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Keep getting interest payable, notes payable incorrect!! Sandhill Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last
Keep getting interest payable, notes payable incorrect!!
Sandhill Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Sandhill 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. (Sandhill 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. Date Account Titles and Explanation Debit Credit Sept. 1 4 Inventory 14400 Notes Payable 14400 Sept. 30 , Interest Expense 96 Interest Payable Oct. 1 4 Equipment 21600 Notes Payable 21600 Oct. 31 Interest Expense 258 Interest Payable 258 Nov. 1 Equipment 35800 Notes Payable 27600 cash 8200 Nov. 30 Interest Expense 396 Interest Payable 396 Dec. 1 Notes Payable 14400 Interest Payable 288 cash 14688 Dec. 31 Interest Expense 300 Interest Payable 300 eTextbook and Media Tict of Account Notes Payable | 12/1 14400 9/1 14400 14400 12/31 [ 49200 10/1 21600 11/1 27600 12/31 Bal. 78000 12/31 Bal. 63600 Interest Expense 9/30 - 258 | 10/319 11/30A 11/30 12/31 300 12/31 Bal. 1050 Interest Payable 12/1 288 9/30 96 12/31 Bal. 4 762 10/31 258 11/30 396 12/31 300 12/31 Bal. 4 1050 Show the balance sheet presentation of notes payable and interest payable at December 31. SANDHILL CORPORATION Balance Sheet (Partial) December 31, 2022 Current Liabilities Notes Payable 78000 Interest Payable 762Step by Step Solution
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