Question

Culver Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Culver had the following transactions related to notes payable. Problem 10-2A Issued a $15,600 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% December 1. (Culver uses a perpetual inventory system.) and is due Sept. 1 Sept. Recorded accrued interest for the Pippen note. 30 Issued a $19,200, 10%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1 Oct. 1 Recorded accrued interest for the Pippen note and the Prime Bank note. 31 Oct. Nov. Issued a $24,000 note and paid $9,200 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 8% and matures in 12 months. 1 Nov. Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note. 30 Paid principal and interest on the Pippen note. 1 Dec. Recorded accrued interest for the Prime Bank note and the vehicle note. 31 Dec. 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.) Credit Debit Account Titles and Explanation Date

Answer 1

The journal entries, ledgers and disclosures are attached below. Please refer

Thanks

Cubes Cosposation Jousnat Eotaies Sept louentory To 9% Note payable CTo Secord puacbara oventosy by ssuing note to Pippen) Dr$1S600 $1Sl00 Sep 30 InteStas To S test payabl EIS S600x S2xAarth) CTo econd accrued intesast on Pippen Note). Cliobing wall assel D$19200 $9300 To ro Note pasabk tssue CTo 90CoSd month Rote to prims bank fpusihose iming a) Oct 31 Intesas Expensas CB/P) nteszast $117 payable TO Intesrest To te etepayabe (19800 x lo. xY2onth) To racomd accsued fntesust F160 On g Note b l0 note)

Vou Toranspont vehich a0ot 290D) To 8A Nole pciyable To cash Clo Snatord purdhage fsansport vehiule, paid pastly p cash & pastly by Issuirg 8Note $33200 9200 Neu 30 Intesrost Expensas au (lotal) To Interest payable IS60ox 9.x 2m) To Interost payable s2o0 x 10. x12) To Intesrast payable $139 $117 $160 $160 CTo Sac0nd accaued interast 9y Note payable Interest payable C$113t$11+1) Dec1 $351 $15951 To casb aL CTo racoad pay ment 9 Note fsseed to Pippen alorg tur fh fntert) $2R0 Dec 31 Intesat expensee aue TO inderast payable 19800 x1Xi2) To 7ntesast payabk a4000 X9 CTo grecond acsued frteaast $1k0

Notes Payabl Ami Dat faahiulars Britc Pastiubas Dati Inventoay 15600 Sep1 Cash Dec) Outclirobing uoall 19200 Bal dd 3రా Novl anspoat vehicle Dec 3) 20885 Inteaust Expensas Paataulas Ant Dat Pastiaulass Ay pate Dec 31 Sep 30 Interast payable 1 72 Oit 31Intes0st payabk 437 Teu 31 Inte 0st payab Occ 31 Intesrest payabl 330 USI

Interast payable APntC Dat Pasticulasss Amt Pasti cubas Pat Sep30 interest expenses 251 113 Cash Dect Oct31 Intesast expenay Nou 30 Interest 939 expense Bal cld 800 Dec 21ntesost expensss Dec 31 ৪२० Cul ver Cospoeation Balanu sheel Notes payable Iaterast payable 12000 $800 $14,000 Total 4) Intesul expenses sousad duing yeae$1S