Question

Exercise 10-1 C.S. Lewis Company had the following transactions involving notes payable. July 1, 2017 Nov. 1, 2017 Borrows $64,800 from Lyon County State Bank by signing a 3-month, 6 % note. Dec. 31, 2017 Prepares adjusting entries. Feb. 1, 2018 Pays prindpal and interest to Lyon County State Bank. Apr. 1, 2018 Borrows $54,000 from First National Bank by signing a 9-month, 8 % note . Pays prindpal and interest to First National Bank Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record adjusting entry for First National Bank note) (To record adjusting entry for Lyon County State Bank note)

Answer 1

Solution Date Genral oal oudrt Debit 201a cash 54000 Tul-0 Note pay able 54000 LBetng ambunt browed nelorded Nov-o Cash 64800 Noter payabte 64800 [Betng amount berowed reorded Interest expese 2808 Dec-31 mterest payale 2808 [54000 x8%x 6/12)+ C4800 x 6x212) X rbelng teryt epense payabte reconded 2013 Notes payabe Interest Expense [Gu80x6%x R/2] 64800 feb-o1 648 Intoust payate G4800 X6x 3a4 Cash 652 betng pymtecoded

Notes payable Apr- 54000 -of aterast trpnseL5yo00 8 X 6/2 2160 Intorest payable 54000 8%x 3/2] lo80 Cash Beng payment recoded]