Prepare the necessary journal entries for the following fiscal year 2022 transactions made by Air...
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Accounting
Prepare the necessary journal entries for the following fiscal year 2022 transactions made by Air Corp.
Additional Information:
1. Air Corp. year-end is 12/31
2. Assume straight-line amortization of discounts.
3. Air Corp. records all purchases and payables at net.
Transactions:
2/2/22 - Air Corp. purchased goods from Vents Inc for $250,000. Terms were 3/10, n/30
2/25/22 - Air Corp. paid Vet Inc. for 2/2/22 purchase
4/1/22 - Air Corp purchased a truck for $80,000 from Ford Motor Company Fleet Sales Division. The sales agreement call for Ai Corp to pay $8,000 on purchase date and to sign a 1-year, 9% note for the remaining balance of the purchase price.
5/1/22 - Air Corp borrowed from St. Paul National Bank $190,000 by signing a $200,000 zero-interest bearing note due one year from May 1.
8/1/22 - Air Corp board of directors declared a $200,000 cash dividend to its common stockholders that was payable on 9/10/22 to stockholders' of record as of 8/31/22.
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