Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Blue had the following

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Blue Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Blue had the following transactions related to notes payable. Sept. 1 Issued a 16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1, (Blue uses a perpetual inventory system.) Sept Recorded accrued interest for the Pippen not,e. 30 Oct. 1 Oct. 31 Nov. 1 Issued a $22,800,906, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1. Recorded accrued interest for the Pippen note and the Prime Bank note. Issued a $28,800 note and paid $8,000 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 Nov 30 Dec. 1 Dec. 31 matures in 12 months. Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note Paid principal and interest on the Pippen note Recorded accrued interest for the Prime Bank note and the vehicle note. Your answer is partially correct. Try again. Prepare journal entries for the transactions noted above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Sept. 1 Inventory 16800 Notes Payable 16800 Sept. 30Interest Expense 112 Interest Payable 112 Oct. 1 Equipment 22800 Notes Payable 22800 Oct. 31 Interest Expense

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

Accounting Information Systems

Authors: George H. Bodnar, William S. Hopwood

8th Edition

0130861774, 9780130861771

More Books

Students also viewed these Accounting questions