Question
Could you please assist me in answering part A Oct 1 and Nov 1 account titles? Also, could you please answer part C?Thanks Marigold Corporation
Could you please assist me in answering part A Oct 1 and Nov 1 account titles? Also, could you please answer part C?Thanks
Marigold Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Marigold had the following transactions related to notes payable.
Sept. 1
Issued a $15,600note to Pippen to purchase inventory. The3-month note payable bears interest of8% and is due December 1. (Marigold uses a perpetual inventory system.)
Sept. 30
Recorded accrued interest for the Pippen note.
Oct. 1
Issued a $19,200,8%,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 $25,200note and paid $8,100cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of7% and matures in12months.
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.
*(a)
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
15600
Notes Payable
15600
Sept. 30
Interest Expense
104
Interest Payable
104
Oct. 1
19200
Notes Payable
19200
Oct. 31
Interest Expense
232
Interest Payable
232
Nov. 1
33300
Cash
8100
Notes Payable
25200
Nov. 30
Interest Expense
379
Interest Payable
379
Dec. 1
Interest Payable
312
Notes Payable
15600
Cash
15912
Dec. 31
Interest Expense
275
Interest Payable
275
Attempts: 2 of 2 used
*(b)
Your answer is correct.
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
12/1
15600
9/1
15600
10/1
19200
11/1
25200
12/31Bal.
44400
Interest Expense
9/30
104
10/31
232
11/30
379
12/31
275
12/31Bal.
990
Interest Payable
12/1
312
9/30
104
10/31
232
11/30
379
12/31
275
12/31Bal.
678
Attempts: 2 of 2 used
*(c)
Show the balance sheet presentation of notes payable and interest payable at December 31.
MARIGOLDCORPORATION
Balance Sheet (Partial)
$
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