The following were among this year’s transactions of U.S. Yarn Shop, which uses a periodic inventory system. Jan. 25 Bought merchandise on account from Greg Morkin, $ 5,000; terms net 30 days. Feb. 24 Gave a 45-day, 6 percent note, dated February 24, for $ 5,000 to Greg Morkin to apply on account.Apr. 10 Paid Greg Morkin the amount owed on the note of February 24. May 24 Bought merchandise on account from Teskey Company, $ 7,300; terms net 30 days. June 23 Gave a 30- day, 5.5 percent note, dated June 23, for $ 7,300 to Teskey Company to apply on account. July 23 Paid Teskey Company the interest due on the note of June 23 and renewed the obligation by issuing a new 60-day, 6 percent note, dated July 23, for $ 7,300 (two entries). Sept. 21 Paid Teskey Company the amount owed on the note of July 23. 25 Borrowed $ 14,000 from Vesco Bank for 90 days; discount rate is 6.5 percent. Accordingly, signed a discounted note for $ 14,000, dated September 25. (Use Interest Expense because the note will mature in the present fiscal period.) Dec. 24 Paid Vesco Bank at maturity of note. Required Record these transactions in a general journal (pages 27 and 28).View Solution:
The following were among this year s transactions of U S Yarn

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