Prepare general journal entries for the following transact
Question and Solution
Prepare general journal entries for the following transactions: May 1 Purchased $5,000 worth of equipment from a supplier on account. June 1 Issued a $5,000, 30-day, 10% note in payment of the account payable. July 1 Paid $500 cash plus interest to the supplier, extending the note for 30 days from July 1. 31 Paid the note in full. Aug. 10 Issued a $3,500, 60-day, 9% note to a supplier for purchase of merchandise.