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Accounting Transactions

by | Nov 30, 2023 | questions

How would you record these transactions in Quickbooks?

1.The Company received $6,000 from First State Bank on a 2-year note. The annual interest rate is 12% per annum.

2.The Company purchased from Route 22 Ford, on account, a pre-owned Ford Pickup Truck for $12,000 that will be used for 4 years. The truck will have a residual
value of $1,200 at the end of its fifth year. This truck will be used to make deliveries for the company.

3.The Company paid Statewide Insurance Company $960 premium on a 12-month policy for the Ford Pickup Truck.

4.The Company lent Millrun Company $5,000. A note was signed with principal and 12% interest per annum to be paid June 1, 2013.

5.The Company received 6 months’ rent of $2,700 from George Thomas CPA who is subleasing part of the company’s office space starting February 1, 2013.

6.The Company paid ABC Company $3,000 for 60 TV ads that are to be aired, 20
per month, throughout March, April and May 2013. Record this amount as an asset.

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