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Journal Entries for Accounts Payable and Notes Payable Geary Company had the following P10-1B. transactions: Apr. 15 Issued a

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Ans-a- General journal

Date Description Debit ($) Credit ($)
April 8 Accounts Payable A/c Dr. 6,000
Notes Payable A/c 6,000
(To record issued a 60-day,8% note payable in payment of an account payable)
May 22 Cash A/c Dr. 50,000
Notes Payable A/c 50,000
(To record borrowed from bank for 60 days at 9%)
June 29 Notes Payable A/c Dr. 6,000
Interest Expense A/c Dr. ($6,000*8%*60/360) 80
Cash A/c 6,080
(To record note payable to Marion Company)
July 13 Inventory A/c Dr. 15,000
Notes Payable A/c 15,000
(To record purchased merchandise and issued a note payable with interest at 8% for 90 days)
July 21 Notes Payable A/c Dr. 50,000
Interest Expense A/c Dr.( $50000*9%*60/360) 750
Cash A/c 50,750
(To record paid note payable to Sinclair Bank)
Oct.2 Cash A/c Dr. 38,000
Notes Payable A/c 38,000
(To record borrowed from bank for 120 days at 12%)
Oct.11 Notes Payable A/c Dr. 15,000
Interest Expense A/c Dr. ($15,000*8%*90/360) 300
Accounts Payable A/c   15,300
(To record defaulted on note payable)
Ans-b-
Dec.31 Interest Expense A/c Dr. ($38000*12%*90/360) 1,140
Interest Payable A/c 1,140
(To record interest on the October 2 note payable to Sinclair Bank)
Days= Oct-31-2=29 days + 30 days of Nov.+31 days of Dec.=90 days
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