The following were among transactions for the Yum Candy Co. during 2013 and 2014.
Required: Journalize the transactions, including all necessary adjusting entries. The books are closed Dec. 31. The company uses a perpetual inventory system.
July 5 Purchased $6,000 of merchandise from Wonka Company on credit.
Aug. 3 Issued 10%, 45 day note payable in settlement on the open account, Wonka Company.
Sept. 17 Paid the note and interest due to the Wonka Co.
Dec. 1 Borrowed $30,000 at the Bank of Godfrey, 90 day, 12% note payable.
Dec. 31 Adjusting entry
Mar. 1 Paid the amount due to the Bank of Godfrey.