Question

C.S. Carla Vista Company had the following transactions involving notes payable.

July 1, 2022		Borrows $92,000 from First National Bank by signing a 9-month, 8% note.
Nov. 1, 2022		Borrows $95,000 from Lyon County State Bank by signing a 3-month, 6% note.
Dec. 31, 2022		Prepares adjusting entries.
Feb. 1, 2023		Pays principal and interest to Lyon County State Bank.
Apr. 1, 2023		Pays principal and interest to First National Bank.

Answer 1

92000 1. July 2 Cash 92000 Notes payable 1. Nov 22 Cash 95000 asovo Notes payable (92000x8%26/12) Claude = 3680) 31 Dec 3680 3680 Interest Expense Stelest payable . 950 (90000 x 6%+2/12) = 950 Interest Expense 950 Interest payable l.feb Notes payable 92000 Interest payable 3680 mteeest expense cash 97520 Notes payable Interest payable astered expense 95000 950 475 cash 96425