Journal Entries for Accounts and Notes Payable Logan Company had the following transactions:

Apr.	8	Issued a $4,800, 75-day, 8% note payable in payment of an account with Bennett Company.
May	15	Borrowed $36,000, 60-day, 9% note from Lincoln Bank.
Jun.	22	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 note for 90-day, 10% interest.
Jul.	14	Paid the May 15 note due Lincoln Bank.
Oct.	2	Borrowed $24,000, 120-day, 12% note from Lincoln Bank.
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. a.

General Journal
Date	Description	Debit	Credit
Apr.8	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankmerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Issued a 75-day, 8% note payable in payment of an account payable.
May 15	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccountsPayable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Borrowed from bank for 60 days at 9%.
Jun.22	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankmerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Interest Expense	Answer	Answer
	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Paid note payable to Bennett Company.
Jul.6	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Purchased merchandise and issued a note payablewith interest at 10% for 90 days.
Jul.14	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Interest Expense	Answer	Answer
	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Paid note payable to Lincoln Bank.
Oct.2	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Borrowed from bank for 120 days at 12%.
Oct.4	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Interest Expense	Answer	Answer
	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	Defaulted on note payable.

b.

General Journal
Date	Description	Debit	Credit
Dec.31	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	AnswerAccounts Payable - Bennett CompanyNotes Payable - Bennett CompanyCashNotes Payable - Lincoln BankMerchandiseInterest ExpenseInventoryNotes Payable - Bolton CompanyAccounts Payable - Lincoln BankAccounts Payable - Bolton CompanyAccrued Interest Payable	Answer	Answer
	To record interest on the October 2 note payable to Lincoln Bank.