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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
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
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