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Indigo Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2019, Indigo had the following
Indigo Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2019, Indigo had the following transactions related to notes payable. Sept. 1 Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1. (Indigo uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 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. Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note. Nov. 1 Issued a $27,600 note and paid $8,200 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 6% and matures in 12 months. 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. - Your answer is partially correct. 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.) Debit Credit Date Sept. 1 Account Titles and Explanation ) Inventory 14400 Notes Payable Interest Expense Sept. 30 Interest Payable Equipment Oct. 1 ) 21600 Oct. 31 Notes Payable Interest Expense Interest Payable Equipment 168 Nov.1 ] Notes Payable 27600 cash 8200 Nov. 30 ) Interest Expense Interest Payable Dec 1 Notes Payable Interest Payable cash Dec 31 | Interest Expense Interest Payable
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