1.On May 10, the company purchased goods from Fox Company for $75,000, terms 2/10, n/30. Purchases...

1.On May 10, the company purchased goods from Fox Company for $75,000, terms 2/10, n/30. Purchases and accounts payable are recorded at “net” of discount. The invoice was paid on May 18.2.On June 1, the company purchased equipment for $150,000 from Rao Company, paying $50,000 in cash and signing a note, due in one-year, plus 9% interest.3.On September 30, the company borrowed $270,000 cash and signed a $300,000, one-year zero-interest-bearing note due to Virginia State Bank.Instructions(

a) Prepare the journal entries necessary to record the transactions above using appropriate dates.

b) Prepare the adjusting entries necessary at December 31, 2018 in order to properly report interest expense related to the above transactions. Assume straight-line amortization of discounts.

(c) Prepare the portion of the balance sheet to show how the above transactions should be reflected in the Current Liabilities section of Lamar Company's December 31, 2018 balance sheet.

Expert Solution

ekkarill92 answered 1 year ago

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