Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during 2019 and 2020: 2019 Nov. 1 Issued a 120-day, 12% note, face value of $20,000, to Johnson Company to settle an open account of that amount. Dec. 1 Issued a 90-day, 12% note, face value of $32,000, to Winslow Corporation for the purchase of merchandise (the perpetual inventory method is used). 2020 Mar. 1 Paid the principal and interest on both the Johnson and the Winslow notes. Required: Prepare journal entries to record the preceding transactions on Adjusto’s books, including the adjusting entries at the end of 2019. Assume a 360-day year.

Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during 2019 and 2020: 2019 Nov. 1 Issued a 120-day, 12% note, face value of $20,000, to Johnson...

Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during 2019 and 2020:

2019
Nov.	1	Issued a 120-day, 12% note, face value of $20,000, to Johnson Company to settle an open account of that amount.
Dec.	1	Issued a 90-day, 12% note, face value of $32,000, to Winslow Corporation for the purchase of merchandise (the perpetual inventory method is used).
2020
Mar.	1	Paid the principal and interest on both the Johnson and the Winslow notes.

	Required:
	Prepare journal entries to record the preceding transactions on Adjusto’s books, including the adjusting entries at the end of 2019. Assume a 360-day year.

Jun 10, 2022