Goldey-Beacom College ACC207 Principles of Accounting I Assignment #1B-CH10 Problem #1. Skate City Corporation sells skateboard products and also operates an indoor skating facility for enthusiasts. During the last part of 2022, Skate City had the following transactions related to notes payable. (a) Prepare journal entries for the transactions noted below. Aug. 1: Issued a $6,000 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due November 1. Dat Account Titles and Explanation e 11/1 Inventory Notes Payable Debit Credit 6,000 6,000 Aug. 31: Recorded accrued interest for the Wheeler note. Dat Account Titles and Explanation e 8/31 Interest expense Interest payable Debit Credit 135 135 Sept. 1: Issued a $15,000, 8%, 6-month note to Commerce Bank to finance the purchase of new ramps for advanced boarders. The note is due March 1. Dat Account Titles and Explanation B Equipment Notes payable Debit Credit 15,000 15.000 Sept 30: Recorded accrued interest for the Wheeler note and the Commerce Bank note Dat Account Titles and Explanation Debit Credit e 9/30 Interest expense Interest payable 735 735 M acer Add-ons Help Last edit was 4 FIOL ayo Arial 12 + BIUA Oct. 1: Issued a $40,000 note and paid $10,000 cash to repair and improve its building. This note bears interest of 896 and matures in 12 months. Dat Account Titles and Explanation 10/1 Cash Notes payable Debit Credit 10,000 40,000 Oct. 31: Recorded accrued interest for the Wheeler note, the Commerce Bank note, and the improvement note. Dat Account Titles and Explanation Debit Credit e Interest expense 3,200 Interest payable 3,935 Nov. 1: Paid principal and interest on the Wheeler note. Dat Account Titles and Explanation e Interest expense Debit Credit Interest payable Cash Nov. 30. Recorded accrued interest for the Commerce Bank note and the improvement note: Dat Account Titles and Explanation e Interest expense interest payable Debit Credit (b) Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts. (Use T-accounts) MI G