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Journal Entries (Note Issued, Renewed, and Paid) May 1 Purchased $5,000 worth of equipment from a supplier on account. June 1 Issued a $5,000, 30-day, 6% note in payment of the account payable. July 1 Paid $1,500 cash plus interest to the supplier, extending the note for 30 days from July 1. 31 Paid the note in full. Aug. 10 Issued a $3,500, 60-day, 7% note to a supplier for purchase of merchandise. Prepare general journal entries for the transactions. Assume 360 days in a year. Page: 1 DOC. POST DATE ACCOUNT TITLE DEBIT CREDIT NO. REF. 20-- May 1 1 2 2 3 3 4 Jun. 1 10 5 5 6 6 7 Jul. 1 LU. 7 8 8 9 9

Answer 1

Date Account lutte Debit Cvedit 5000 5000 Mayl Equipment 5000 Accounts payable clo second prochaine fequlomert en octol Juner Acounts payable Note peljalle (To record note in payment of the account payable Julys Notes payable Intestespense Noluspaitable cash (1500+05) No auecond payment of couen plus interest to the supplies Jecky 31 notes payable 3500 Interest expense cash C10 septed notipald) Aug. 810 Mesuchandise invertowy 3500 Notu papable (10 suced idee note to a supplied Jou puoichased merchandise 3500 1525 357705 3500

Note: (Icunal entries 3:) Jedlyl- calculation of Interest expenso 5000X 6 X 30 25 100 360 calculation of cash plus interest cash 11500725 , 1525 July31: Paid the note in fell cáiculation of interest expense 8500 x 6jX 30 360 : 210x30 115 360 cash: Notes payable + Intecost expense 35004115 3514.5
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