Question

Brief Exercise 13-2 Sunland Company borrowed $37,200 on November 1, 2017, by signing a $37,200, 9%, 3-month note. Prepare Sunland’s November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Brief Exercise 13-2 Sunland Company borrowed $37,200 on November 1, 2017, by signing a $37,200, 9%, 3-month note. Prepare Sunland's November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2/1/18 Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answer-

Date	Accounts Titles & Explanation	Debit	Credit
2017		$	$
Nov-01	Cash	37200
	Notes Payable		37200
	(Being entry recorded)
2017	Interest expense ($37200*9%)*2 months/12 months	558
Dec-31	Interest payable		558
	(Being entry recorded for interest expense)
2018	Interest expense	279
Feb-01	Interest payable	558
	Notes payable	37200
	Cash		38037
	(Being entry recorded)