Assume that Kraft Foods, famous for cheese, Jell-O, and Planters nuts, completed the following selected transactions.
Nov. 30 Sold goods to Safeway, Inc., receiving a $50,000, 3-month, 6% note.
Dec. 31 Made an adjusting entry to accrue interest on the Safeway note.
Feb. 28 Collected the Safeway note.
Mar. Received a 90-day, 7%, $6,000 note from Pete's Catering on account.
1 Sold the Pete's Catering note to Lakewood Bank, receiving cash of $5,900.
Dec. 16 Loaned $25,000 cash to Nabisco Brands, receiving a 90-day, 12% note.
31 Accrued the interest on the Nabisco note.
1. Record the transactions in Kraft's journal. Round interest amounts to the nearest dollar.
Explanations are not required.
2. Show what Kraft will report on its comparative classified balance sheet at December 31,
20X8, and December 31, 20X7.
This question was answered on: Jul 11, 2017
Need a similar solution fast, written anew from scratch? Place your own custom order
We have top-notch tutors who can help you with your essay at a reasonable cost and then you can simply use that essay as a template to build your own arguments. This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student. New solution orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.