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J ournal Entries for Accounts and Notes Payable Logan Company had the following transactions: Apr. 8 Issued a $5,000, 60-day, six percent note payable in
Journal Entries for Accounts and Notes Payable Logan Company had the following transactions:
Apr. | 8 | Issued a $5,000, 60-day, six percent note payable in payment of an account with Bennett Company. |
May | 15 | Borrowed $40,000 from Lincoln Bank, signing a 60-day note at nine percent. |
Jun. | 7 | Paid Bennett Company the principal and interest due on the April 8 note payable. |
Jul. | 6 | Purchased $12,000 of merchandise from Bolton Company; signed a 90-day note with ten percent interest. |
Jul. | 14 | Paid the May 15 note due Lincoln Bank. |
Oct. | 2 | Borrowed $30,000 from Lincoln Bank, signing a 120-day note at 12 percent. |
Oct. | 4 | Defaulted on the note payable to Bolton Company. |
Required a. Record these transactions in general journal form. b. Record any adjusting entries for interest in general journal form. Logan Company has a December 31 year-end.
Round answers to nearest dollar. Use 360 days for interest calculations.
Apr 8 Merchandise Accounts payable Bolton Company issued a 60-day, 6 percent note payable in payment of an account payable. May 15 Notes Payable-Lincoln Bank Interest Expense Borrowed from bank for 60 days at 9 percent. un.7 Interest Expense Paid note payable to Bennett CompanyStep by Step Solution
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