Question

Bramble Corp. had the following transactions involving notes payable. July 1, 2020 Borrows $56,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2020 Borrows $67,800 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2020 Prepares adjusting entries. Feb. 1, 2021 Pays principal and interest to Lyon County State Bank. Apr. 1, 2021 Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entere 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

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Debit AW Dale Accounts Explanation $ 56500 July $ 56 Soo 2620 Cash Al 8% notes to record payable notes payable) $ 67800 now I Cash Ak 67 notes payable (to record notes payable) $ 2260 Dec 31 $ 2260 Interest Expense ALL (56500X8%.6/12) Interest payable Ale Fo record adjustment 7 Entry from first national (bank Dec 31 Interest Expense AC 67800 x 61. x2/12) Interest payable Ale to record adjustment Entry] I fox Lyon County 67800 24-1 Febi 67. noles Payable Inteoest payable Interest Expenses For Imonth Cash Ak (6 xccord maturily of note) 673 339 Ye Jam $ 68,817 APRI $ 56500 8% noles payable Inteset Payable Interest Expense (56500x84.83 Cash Ale To acord matusity of notes) 2260 59890

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