Sparks Company Entered into the Following Transactions Involving Short-Term Notes

question 116

Essay

Sparks Company entered into the following transactions involving short-term notes payable. On June 18, Sparks purchased $25,000 merchandise from EquipCo., terms 2/10, n/30. Sparks uses the perpetual inventory system. On July 19, Sparks replaced the June 18 account payable with a
60-day, $12,000 note bearing 4% annual interest in addition to paying $13,000 in cash. Sparks paid the amount due on the note at maturity.
1. Determine the maturity date for the note.
2. Prepare journal entries for all the preceding transactions and events.

---

Definitions:

Rational Emotive Thoughts

refer to the components of Rational Emotive Behavior Therapy (REBT), emphasizing the role of rational thinking in overcoming emotional or behavioral issues.

Delusions

Fixed false beliefs that are resistant to reasoned argument or factual evidence, often found in psychiatric conditions such as schizophrenia.

Arbitrary Inference

A cognitive distortion where an individual draws a conclusion without evidence, or in spite of contradictory evidence.

Personalization

The process of tailoring a product, service, or content to an individual's specific needs, preferences, or interests.