Homework Answers
Answers
| Date | Accounts title | Post Ref | Debit | Credit |
| 01-Dec-19 | Inventory | 141 | $32,000 | |
| Notes Payable | 221 | $32,000 | ||
| (to record purchase) | ||||
| 31-Dec-19 | Interest Expense | 511 | $160 | |
| Interest Payable ($32000 x 6% x 30days/360 days) | 224 | $160 | ||
| (to record Dec Interest) | ||||
| 01-Apr-20 | Notes Payable | 221 | $32,000 | |
| Interest Payable | 224 | $160 | ||
| Interest Expense ($32000 x 6% x 90 days/360) | 511 | $480 | ||
| Cash | 111 | $32,640 | ||
| (to record payment at maturity) |
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