General Co

question 23

Essay

General Co.entered into the following transactions involving short-term notes payable.
On May 14,General purchased $40,000 merchandise from Steller Co. ,terms are 2/15,n/30.General uses the perpetual inventory system.On May 29,General replaced the May 14 account payable with a 60-day,$36,000 note bearing 8% annual along with paying $4,000 in cash.On July 28,General paid the amount due on the note at maturity.
Prepare journal entries for all the preceding transactions and events.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, essentially representing the ownership interest held by shareholders.

Increase Assets

Actions or transactions that cause a rise in the total value of a company's assets.

Decrease Assets

A reduction in the value or quantity of the assets owned by a company, which can impact its overall financial health.

Common Stock

A type of equity security that represents ownership in a corporation, giving the shareholder voting rights and a share in the company's profits, usually in the form of dividends.