Question

CALCULATOR PRINTER VERSION 4BACK NEXT Problem 10-2A Monty Corporation sells rock-climbing products and also aperates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Monty had the following transactions related to notes payable. Sept. Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears interest of 6 % and is due December 1. (Monty uses a perpetual inventory system.) Sept Recorded accrued interest for the Pippen note. 30 Issued a $19,200, 8 % , 4-month note to Prime Bank to finance the purchase ofa new climbing wall for advanced climbers. The note is due February 1. Oct. 1 Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note. Issued a $25,200 note and paid $8,700 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 6 % and matures in 12 months. Nov. 1 Nov. Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note 30 Dec. 1 Paid principal and interest on the Pippen note. Dec. Recorded accrued interest for the Prime Bank note and the vehicle note. 31 Your answer is partially correct. Try again. Prepare journal entries for the transactions noted above. (Credit account titles are automatically indented when amount is entered. Do not indent manually, Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Sept. 1 Inventory 14,400
need to finish journal entries and balance sheet account

how much interest expense relating to notes payable did monty incur during the year. interest expense incurred during the year

Answer 1

Answer
Journal entries
Date	Description	Debit	Credit
Sep-01	A/c payable	$                14,400
	Notes payable		$                   14,400
Sep-30	Interest expense	$                       72
	Interest payable		$                          72
Oct-01	Bank loan	$                19,200
	Notes payable		$                   19,200
Oct-31	Inteest expense	$                     200
	To interest payable(128+72)		$                        200
Nov-01	Vehicle	$                33,900
	To Cash		$                     8,700
	To Notes payable		$                   25,200
Nov-30	Interest expense(126+72+128)	$                     326
	Interest payable		$                        326
Dec-01	Notes payable	$                14,400
	interest payable	$                     216
	To cash		$                   14,616
Dec-31	interest expense	$                     254
	Interest payable		$                        254

T- Accounts
Notes payable
Dec-01	$                14,400	Sep-01	$                   14,400
		Oct-01	$                   19,200
		Nov-01	$                   25,200
Balance cr	$                44,400
Interest expense
Sep-30	$                       72
Oct-31	$                     200
Nov-30	$                     326
Dec-31	$                     254
Balance Dr	$                     852
interest payable
Dec-11	$                     216	Sep-30	$                          72
		Oct-31	$                           -
		Nov-30	$                        326
		Dec-31	$                        254
balacne Cr	$                     436

Balance sheet
liabilities                                                                      Assets
Notes payable                    $44,400
interest payable                          $ 436
interest expense incurred during the year $852