The following were among the transactions of Kirsten s

Craft Shop
The following were among the transactions of Kirsten’s Craft Shop during this year. The firm,
whose fiscal year ends on December 31, uses a periodic inventory system. Jan. 25 Bought
merchandise on account from Rossy Company, $ 3,565; terms 2/10, n/30. Feb. 24 Gave a
30-day, 5 percent note, dated February 24, for $ 3,565 to Rossy Company to apply on account.
Mar. 26 Paid $ 2,000 as partial payment on principal as well as the full interest on the note
given to Rossy Company. Issued a new 45-day, 6 percent note, dated March 26, for $ 1,565
(two entries). May 10 Paid Rossy Company the amount owed on the note of March 26. June 26
Borrowed $ 8,000 from Old Town Bank for 90 days; discount rate is 5.5 percent. Accordingly,
signed a discounted note for $ 8,000 dated June 26. Sept. 24 Paid Old Town Bank the amount
owed on the note of June 26. Oct. 28 Bought display racks for $ 1,235 from Carson’s Fixtures.
Issued a 90-day, 5.25 percent note, dated October 28. Dec. 31 Recorded the adjusting entry for
accrued interest on the note given to Carson’s Fixtures. Jan. 1 Recorded the reversing entry.
(Assume that closing entries were journalized and posted.) Required 1. Record these
transactions in the general journal (pages 12 and 13). 2. Immediately after each journal entry,
record each note in the notes payable register. Fill in the date paid after journalizing the entry to
pay the note or fill in “renewed” if not paid.View Solution: The following were among the
transactions of Kirsten s Craft Shop
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