Requirement (a):
Date | Account title and explanation | Debit | Credit |
Sept.1 | Inventory | $16,000 | |
Notes payable | $16,000 | ||
[To record purchase of inventory in exchange of notes] | |||
Sept.30 | Interest expense (16,000 x 9% x 1/12) | $120 | |
Interest payable | $120 | ||
[To record accrued interest expense] | |||
Oct.1 | Building | $10,000 | |
Notes payable | $10,000 | ||
[To record purchase of building in exchange of notes] | |||
Oct.31 | Interest expense [120+ (10,000 x 12% x 1/12)] | $220 | |
Interest payable | $220 | ||
[To record accrued interest expense] | |||
Nov.1 | Vehicle | $26,000 | |
Cash | $8,000 | ||
Notes payable | $18,000 | ||
[To record purchase of vehicle in exchange of notes] | |||
Nov.30 | Interest expense [220+(18,000 x 14% x 1/12)] | $430 | |
Interest payable | $430 | ||
[To record accrued interest expense] | |||
Dec.1 | Notes payable | $16,000 | |
Interest payable (120 x 3) | $360 | ||
Cash | $16,360 | ||
[To record payment of black diamond note] | |||
Dec.31 | Interest expense [(10,000 x 12% x 1/12)+(18,000 x 14% x 1/12)] | $310 | |
Interest payable | $310 | ||
[To record accrued interest expense] |
Requirement (b):
Notes payable | |||
Dec.1 | $16,000 | Sept.1 | $16,000 |
Oct.1 | $10,000 | ||
Nov.1 | $18,000 | ||
Bal. | $28,000 | ||
Interest payable | |||
Dec.1 | $360 | Sept.30 | $120 |
Oct.31 | $220 | ||
Nov.30 | $430 | ||
Dec.31 | $310 | ||
Bal. | $720 | ||
Interest expense | |||
Sept.30 | $120 | ||
Oct.31 | $220 | ||
Nov.30 | $430 | ||
Dec.31 | $310 | ||
PSA9.1 Journalise and post note transactions; show statement of financial position presentation. LO2 Cling-on Ltd sells...
Cling-on Ltd. sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. On July 1, 2018, Cling-on received a three-month $13,200 bank loan from City Credit Union due on September 30, 2015, and bearing interest at 3%. Interest is payable at maturity. Note that the company records adjusting entries annually at its year end, December 31. During the next four months, Cling-on incurred the following: Sept. 1 30 Oct. 1 Purchased Inventory on account for $14,200 from...
Pls help out:) Problem 10-2A Cling-on Ltd. sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. On July 1, 2018, Cling-on received a three-month $12,400 bank loan from City Credit Union due on September 30, 2018, and bearing interest at 3%. Interest is payable at maturity. Note that the company records adjusting entries annually at its year end, December 31 During the next four months, Cling-on incurred the following: Sept. 1 Purchased inventory on account for...
Please show how you calculate the number for the december 31 entry Cling-on Ltd. sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. On July 1, 2018, Cling-on received a three-month $11,200 bank loan from City Credit Union due on September 30, 2018, and bearing interest at 3%. Interest is payable at maturity. Note that the company records adjusting entries annually at its year end, December 31. During the next four months, Cling-on incurred the following:...
Sunland Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Sunland had the following transactions related to notes payable. Sept. 1 Issued a $15,600 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Sunland uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $19,200, 10%, 4-month note to Prime Bank...
Blossom Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Blossom had the following transactions related to notes payable. Sept. 1 Issued a $16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1. (Blossom uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $21,600, 9%, 4-month note to Prime Bank...
Current Attempt in Progress Wildhorse Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Wildhorse had the following transactions related to notes payable. Sept. 1 Issued a $13,200 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Wildhorse uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $22.800,9%, 4-month note...
Problem 10-05A a-d (Part Level Submission) Culver Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2020, Culver had the following transactions related to notes payable. Sept. 1 Issued a $15,600 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Culver uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $19,200,...
Oriole Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Oriole had the following transactions related to notes payable. Sept. 1 Issued a $15,600 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Oriole uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $18,000,9%, 4-month note to Prime Bank to...
Problem 10-02A Carla Vista Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Carla Vista had the following transactions related to notes payable. Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Issued a $16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1. (Carla Vista uses a perpetual inventory system.) Recorded accrued interest for the Pippen note....
Crane Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Crane had the following transactions related to notes payable. Sept. 1 Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears interest of 7% and is due December 1. (Crane uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $18,000. 10%, 4-month note to Prime Bank...