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Can someone please help me figure this out!! I really don't know if I am doing this correctly! Thank you so much!! Question 4 Pina
Can someone please help me figure this out!! I really don't know if I am doing this correctly! Thank you so much!!
Question 4 Pina Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Pina had the following transactions related to notes payable Sept. Issued a $16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1" (Pina uses a perpetual 1 inventory system.) 30 Oct. 1 Oct. 31 Nov. Recorded accrued interest for the Pippen note Issued a $21,600, 9%, 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 $26,400 note and paid $8,800 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 7% and 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 30 Dec. 31 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 Cash 21600 Notes Payable 21600 Oct. 31 Interest Expense 274 Interest Payable 274 Nov. 1 Equipment 35200 Cash 8800 Notes Payable 26400 Nov. 30t Expense 428 428 Interest Payable Notes Payable Interest Payable Dec. 1 16800 336 Cash 17136 Dec. 31 Interest Expense Interest Payable 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 p part of the question.) Notes Payable Interest Expense Interest Payable Show the balance sheet presentation of notes payable and interest payable at December 31. PINA CORPORATION Balance Sheet (Partial) December 31, 2017 How much interest expense relating to notes payable did Pina incur during the year? How much interest expense relating to notes payable did Pina incur during the year? Interest expense incurred during the yearStep by Step Solution
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