On December 1, 2018, Parsons Sales Sold Machinery to Janet's

question 114

Essay

On December 1, 2018, Parsons Sales sold machinery to Janet's Vegetables for $2,000. Janet could not pay at the time of sale, but agreed to pay 9 months later, and signed a 9-month note at 12% interest. Parsons accrues interest only at year-end. On September 1, 2019 Parsons collected the whole amount due. Janet's Vegetables will be using the equipment in the business.
Provide all of the required journal entries for Parson Sales for 2018 and 2019, and, for Janet's Vegetables the 2018 required journal entries, assuming a one-year useful life and $200 estimated residual value for the equipment.
General Journal-Parsons Sales $\begin{array} { | l | l | l | l | } \hline \text { Date } & \text { Accounts } & \text { Debit } & \text { Credit } \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}$ General Journal-Janet's Vegetables $\begin{array} { | l | l | l | l | } \hline \text { Date } & \text { Accounts } & \text { Debit } & \text { Credit } \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline & & & \\\hline\end{array}$

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Definitions:

Clear And Present Danger

A doctrine used to test whether limitations may be placed on First Amendment freedoms of speech, press, or assembly when the exercise of these rights presents an immediate danger.

Affirmative Action

Policies or measures that favor individuals belonging to groups known to have been discriminated against previously, often related to education and employment.

Future Sum

The amount of money or value to be received or paid at a specified date in the future.

Interest Rate

The fee, represented as a fraction of the initial sum, that a creditor levies on a debtor for asset utilization.