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At January 1, 2021. Han Merchants had a balance in the Interest Payable account for several notes it had signed and given to suppliers in
At January 1, 2021. Han Merchants had a balance in the Interest Payable account for several notes it had signed and given to suppliers in exchange for outstanding accounts payable. The following table contains the details of the notes payable and the balance of the interest accrued on cach note as at the end of the last fiscal year, December 31, 2020. Note Principal Supplier Interest Rate Interest Accrued Issue Date Term 1 Tessier Inc $5,100 5% Nov. 1, 2020 3 months $4250 2 Wolde Inc 6.900 4.5% Nov 30, 2020 5 months 25.88 3 Deng Inc. 10,200 6X6 Dec. 1. 2020 1 year 51.00 Total $119.38 All notes require that the interest be paid at the maturity of the note. All notes and interest were paid on time. Han prepares adjusting entries at the end of its calendar fiscal year, Additional transactions of 2021 Signed a $11.700, one-year, 5% note to Lalonde Ltd. in settlement of an accounts payable. Interest is due at maturity. Signed a $4,800, three month, 4.5% note to Hanover Ltd. in settlement of an accounts payable Interest is clue at Oct. 30 maturity Mar. 1 Nov 30 Borrowed from RBC $10,200 cash in exchange for a two-year 6% note with interest due at maturity Prepare all journal entries for Han Merchants for the above transactions and to record the on-time repayment of the notes payable that were outstanding as at December 31, 2020. (Round answers to 2 decimal places, eg. 52.76. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 2021 Feb. 1 Apr. 30 Apr. 30 Dec. 1 Prepare any adjusting entry required on December 31, 2021. (Round answers to 2 decimal places, e.g. 52.76. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Dec. 31 --/2 Question Part Score What amount will appear under interest expense for Han's income statement for the year ended December 31, 2021? Where will this amount be classified on the income statement? (Round answer to 2 decimal places, eg. 52.76.) Income Statement Classification Amount Interest expense What will be the amounts and classifications that will appear on Han's balance sheet at December 31, 2021, concerning the notes payable? (Round answers to 2 decimal places, e.g. 52.76.) Han Merchants (Partial) Balance Sheet
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