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P 10 2 b please help CSO 2, T. AP a $9.000, 3-month Problems: Set B 555 P10-2B Majestic Mountain Bikes markets mountainbike our in
P 10 2 b please help
CSO 2, T. AP a $9.000, 3-month Problems: Set B 555 P10-2B Majestic Mountain Bikes markets mountainbike our in various locations in the mountains of Colorado in clients vacationing Jouse and post mode ner biking season, Majestic entered into the following transactions related to notes payable art for the ring sumtransactions Sew balance Mar. 1 Purchased Puma bikes for use as rentals by issuing a $9,000, 3-month. 6% note payable that is due June 1. Mar. 31 Recorded accrued interest for the Puma note. Apr. 1 issued a $45.000 9-month note for the purchase of mountain property on which to build bike trails. The note hears 89e interest and is due January 1 Apr 30 Recorded accrued interest for the Puma note and the land note. May 1 Issued a 4-month note to Jackson State Bank for $12.000 at 6%. The funds will be used for working capital for the beginning of the season, the note is due September 1. May 31 Recorded accrued interest for all three notes. June 1 Paid principal and interest on the Puma note. June 30 Recorded accrued interest for the land note and the Jackson State Bank note. Instructions (a) Prepare journal entries for the transactions noted above. (b) Interest Payable $1,020 (b) Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts. (Use T accounts.) (c) Assuming that Majestic's year-end is June 30, show the balance sheet presentation of notes payable and interest payable at that date. d) How much interest expense relating to notes payable did Majestic incur during the year? Prepare journal entrie P10-3B The following section is taken from Lois Corp.'s balance sheet at December 31, record interest payme redemption of bonds (S0 5,6), AP Current liabilities 2011. $ 84,000 Interest payableStep by Step Solution
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