Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Edward Lewis Company had the following transactions involving notes payable. June 1, 2022 Borrows $81,200 from First National Bank by signing a 9-month, 12% note.
Edward Lewis Company had the following transactions involving notes payable. June 1, 2022 Borrows $81,200 from First National Bank by signing a 9-month, 12\% note. Dec. 1, 2022 Borrows $104,400 from Sycamore State Bank by signing a 3-month, 10% note. Dec. 31, 2022 Prepares adjusting entries. Mar. 1,2023 Pays principal and interest to Sycamore State Bank. Mar. 1, 2023 Pays principal and interest to First National Bank. Your answer is partially correct. Prepare journal entries for each of the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (To record accrual of interest from First National Bank) December 31, 2022 Interest Expense Interest Payable (To record accrual of interest from Sycamore State Bank) March 1, 2023 Notes Payable Interest Expense Interest Payable Cash (To record payment of principal and interest to Sycamore State Bank.) March 1, 2023 Notes Payable Interest Payable (To record payment of principal and interest to Sycamore State Bank.) (To record payment principal and interest to First National Bank.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started