Question
I am struggling to get the last piece of information for the Dec. 31st Transaction of Interest expense and interest payable. Problem 10-02A Pharoah Corporation
I am struggling to get the last piece of information for the Dec. 31st Transaction of Interest expense and interest payable.
Problem 10-02A
Pharoah Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Pharoah had the following transactions related to notes payable.
Sept. 1Issued a $16,800note to Pippen to purchase inventory. The3-month note payable bears interest of6% and is due December 1. (Pharoah uses a perpetual inventory system.)Sept. 30Recorded accrued interest for the Pippen note.Oct. 1Issued a $21,600,8%,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. 31Recorded accrued interest for the Pippen note and the Prime Bank note.Nov. 1Issued a $27,600note and paid $9,200cash 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. 30Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note.Dec. 1Paid principal and interest on the Pippen note.Dec. 31Recorded accrued interest for the Prime Bank note and the vehicle note.
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