Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blossom Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Blossom had the following

image text in transcribedimage text in transcribedimage text in transcribed

Blossom Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Blossom had the following transactions related to notes payable. Sept. 1 Issued a $13,200 note to Pippen to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1. (Blossom uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $18,000, 8%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1. Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note. Nov. 1 Issued a $24,000 note and paid $7,500 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 6% and matures in 12 months. Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note. Dec. 1 Paid principal and interest on the Pippen note. Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note. Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts.(Post entries in the order of journal entries posted in the previous part of the question.) Notes Payable Interest Expense Interest Payable ate Account Titles and Explanation Debit Credit -1 Inventory 13,200 Notes Payable 13,200 30 Interest Expense 66 Interest Payable 66 1 Equipment 18,000 Notes Payable 18,000 31 Interest Expense 186 Interest Payable 186 1 Equipment 31,500 Notes Payable 24,000 Cash 7.500 30 Interest Expense 306 Interest Payable 306 Notes Payable 13,200 Interest Payable 198 Cash 13,398 31 Interest Expense 240 Interest Payable 240

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting Standards A Practical Guide

Authors: Hennie Van Greuning, Darrel Scott, Simonet Terblanche

6th Edition

0821384287, 978-0821384282

More Books

Students also viewed these Accounting questions

Question

Connect with your audience

Answered: 1 week ago