Date | Account titles and explanation | Debit | Credit | ||||
Sept 1. | Merchandise Inventory | 14200 | |||||
Accounts payable | 14200 | ||||||
(To record purchase on account) | |||||||
Sept 30. | Bank loan payable | 13200 | |||||
Interest expense | (13200*3%*3/12) | 99 | |||||
Cash | 13299 | ||||||
(Bank loan repaid along with 3 months interest) | |||||||
Oct 1. | Accounts payable | 14200 | |||||
Notes payable | 14200 | ||||||
(Issued note for accounts payable) | |||||||
Oct 2. | Buildings | 25300 | |||||
Bank loan payable | 25300 | ||||||
(Borrowed from bank to finance the building) | |||||||
Nov 1. | Interest expense | (14200*4%*1/12) | 47 | ||||
Cash | 47 | ||||||
(To record interest on black diamond note) | |||||||
Nov 1. | Interest expense | (25300*3%*1/12) | 63 | ||||
Cash | 63 | ||||||
(To record interest on Montpelier bank loan) | |||||||
Dec 1. | Interest expense | (14200*4%*1/12) | 47 | ||||
Cash | 47 | ||||||
(To record interest on black diamond note) | |||||||
Dec 1. | Interest expense | (25300*3%*1/12) | 63 | ||||
Cash | 63 | ||||||
(To record interest on Montpelier bank loan) | |||||||
Dec 3. | Vehicles | 25300 | |||||
Cash | 8000 | ||||||
Bank loan payable | (25300-8000) | 17300 | |||||
(Purchased a vehicle) | |||||||
Dec 31. | Interest expense | (14200*4%*1/12) | 47 | ||||
Interest payable | 47 | ||||||
(To record interest accrued on black diamond note) | |||||||
Dec 31. | Interest expense | (25300*3%*1/12) | 63 | ||||
Interest payable | 63 | ||||||
(To record interest accrued on Montpelier bank loan) | |||||||
Dec 31. | Interest expense | (17300*3%*1/12) | 43 | ||||
Interest payable | 43 | ||||||
(To record interest accrued on Atlantic loans) | |||||||
Interest expense | |||||||
Sept 30. | 99 | ||||||
Nov 1. | 47 | ||||||
Nov 1. | 63 | ||||||
Dec 1. | 47 | ||||||
Dec 1. | 63 | ||||||
Dec 31. | 47 | ||||||
Dec 31. | 63 | ||||||
Dec 31. | 43 | ||||||
472 | 0 | ||||||
End bal. | 472 | ||||||
Interest payable | |||||||
Dec 31. | 47 | ||||||
Dec 31. | 63 | ||||||
Dec 31. | 43 | ||||||
0 | 153 | ||||||
End bal. | 153 | ||||||
Notes payable | |||||||
Oct 1. | 14200 | ||||||
0 | 14200 | ||||||
End bal. | 14200 | ||||||
Bank loan payable | |||||||
Sept 30. | 13200 | Sept 1. | 13200 | ||||
Oct 2. | 25300 | ||||||
Dec 3. | 17300 | ||||||
13200 | 55800 | ||||||
End bal. | 42600 | ||||||
Income statement (Partial) | |||||||
$ | |||||||
Other revenues and expenses | |||||||
Interest expense | 472 | ||||||
Statement of financial position | |||||||
$ | |||||||
Current liabilities: | |||||||
Interest payable | 153 | ||||||
Notes payable | 14200 | ||||||
Bank loan payable | 42600 | ||||||
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