Lilley & Taylor, CPAs completed the following selected transactions:
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20X7 |
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Oct. 31 |
Performed service for Lifeway Catholic School, receiving a $30,000, 3 month, 8% note. |
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Dec. 31 |
Made an adjusting entry to accrue interest on the Lifeway note. |
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20X8 |
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Jan.31 |
Received a 90 day, 10%, $10,000 note from Fishbowl, Inc., on account. |
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Feb.18 |
Collected the Lifeway note. |
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19 |
Sold the Fishbowl note to First State Bank, receiving cash of $9,700. |
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Nov. 11 |
Loaned $20,000 cash to Diaz Insurance Agency, receiving a 90 day, 9% note. |
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Dec.31 |
Accrued the interest on the Diaz note. |
Required
1. Record the transactions in Lilley & Taylor’s journal. Round all amounts to the nearest dollar. Explanations are not required.
2. Show what Lilley & Taylor will report on its comparative classified balance sheet at December 31, 20X8, and December 31, 20X7.