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
