Question 1 [30 points] Northstar Corp. entered into the following transactions involving short-term liabilities during...
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Question 1 [30 points] Northstar Corp. entered into the following transactions involving short-term liabilities during 2014 and 2015. Prepare journal entries to record these transactions for Northstar Corp. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). Round all amounts to the nearest cent. a. May 14 : Northstar Corp. purchased merchandise from Oppong Corporation for $29,000 under credit terms of 2/20, n/30. b. June 13 : Gave Oppong Corporation $17,000 cash and a $12,000, 60-day, 10% note to secure an extension on the past-due account. C. ? : Paid the note to Oppong Corporation at maturity. d. September 5 : Borrowed $20,000 from Canada Trust Bank by signing a 10%, 90-day note. e. December 2: Borrowed $23,000 from Royal Bank by signing a 8%, 60-day note. f. ? The note to Canada Trust Bank was paid at maturity. g. December 31 : Recorded an adjusting entry of the accrual of interest on the note to Royal Bank. : The note to Royal Bank was paid at maturity. h. General Journal Account/Explanation Page Gj1 F Debit Credit Date + 2) + = General Journal Account/Explanation Page Gj1 Credit Date F Debit + + + - + + - + +
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