Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

P10.2A (LO 1,5) The following are selected transactions of Blanco Company. Blanco prepares statements quarterly. Purchased merchandise on account from Nunez Company, $30,000, terms 2/10,

image text in transcribed
image text in transcribed
P10.2A (LO 1,5) The following are selected transactions of Blanco Company. Blanco prepares statements quarterly. Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/ (Blanco uses the perpetual inventory system.) 1 2 Jan. Issued a 9%, 2-month, $30,000 note to Nunez in payment of account. Accrued interest for 2 months on Nunez note. Feb. 31 Mar. Paid face value and interest on Nunez note. 1 Apr. 1 July Purchased equipment from Marson Equipment paying $11,000 in cash and signing 3-month, $60,000 note. Accrued interest for 3 months on Marson note. Sept. 30 Paid face value and interest on Marson note. Oct. 1 Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with a face $24,000. Recognized interest expense for 1 month on Paola Bank note. Dec. 1 Dec. 31 Instructions a. Prepare journal entries for the listed transactions and events. b. Post to the accounts Notes Payable, Interest Payable, and Interest Expense. c. Show the balance sheet presentation of notes and interest payable at December 31. d. What is total interest expense for the year? parejournal entries tor the transactist b. Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts. (Use T-accounts.) b. Inter c. Show the balance sheet presentation of notes payable and interest payable at December 31. d. How much interest expense relating to notes payable did Ehler incur during the year? P10.6A (LO 3) The following section is taken from Hardesty's balance sheet at December 31, 2019. Prpar interes of bor Current liabilities $ 40,000 Interest payable Long-term liabilities Bonds payable (8%, due January 1, 2023) 500,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Instructions a. Journalize the payment of the bond interest on January 1, 2020. b. Assume that on January 1, 2020, after paying interest, Hardesty calls bonds having a face value of $200,000. The call price is 103. Record the redemption of the bonds re the adjusting entry on December 31, 2020, to accrue the interest on the remaining bonds. roncs issues a $400,000, 8%, 10-year mortgage note on December c. Prepa P10.7A LO 4,5) Talkington Elect 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the not te provide for annual installment payments, exclusive of real estate taxes and insurance, of $59,612. Payments are due on December 31. P10.2A (LO 1,5) The following are selected transactions of Blanco Company. Blanco prepares statements quarterly. Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/ (Blanco uses the perpetual inventory system.) 1 2 Jan. Issued a 9%, 2-month, $30,000 note to Nunez in payment of account. Accrued interest for 2 months on Nunez note. Feb. 31 Mar. Paid face value and interest on Nunez note. 1 Apr. 1 July Purchased equipment from Marson Equipment paying $11,000 in cash and signing 3-month, $60,000 note. Accrued interest for 3 months on Marson note. Sept. 30 Paid face value and interest on Marson note. Oct. 1 Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with a face $24,000. Recognized interest expense for 1 month on Paola Bank note. Dec. 1 Dec. 31 Instructions a. Prepare journal entries for the listed transactions and events. b. Post to the accounts Notes Payable, Interest Payable, and Interest Expense. c. Show the balance sheet presentation of notes and interest payable at December 31. d. What is total interest expense for the year? parejournal entries tor the transactist b. Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts. (Use T-accounts.) b. Inter c. Show the balance sheet presentation of notes payable and interest payable at December 31. d. How much interest expense relating to notes payable did Ehler incur during the year? P10.6A (LO 3) The following section is taken from Hardesty's balance sheet at December 31, 2019. Prpar interes of bor Current liabilities $ 40,000 Interest payable Long-term liabilities Bonds payable (8%, due January 1, 2023) 500,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. Instructions a. Journalize the payment of the bond interest on January 1, 2020. b. Assume that on January 1, 2020, after paying interest, Hardesty calls bonds having a face value of $200,000. The call price is 103. Record the redemption of the bonds re the adjusting entry on December 31, 2020, to accrue the interest on the remaining bonds. roncs issues a $400,000, 8%, 10-year mortgage note on December c. Prepa P10.7A LO 4,5) Talkington Elect 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the not te provide for annual installment payments, exclusive of real estate taxes and insurance, of $59,612. Payments are due on December 31

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sawyers Internal Auditing Enhancing And Protecting Organizational Value

Authors: The Internal Audit Foundation

7th Edition

1634540522, 9781634540520

More Books

Students also viewed these Accounting questions