Problem 10 02A (Part Level Submission) Sheridan Corporation sells rock climbing products and also operates an indoor climbing facility for climbing enthusiasts During the last part of 2022, Sheridan 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 6 and is due December 1 (Sheridan uses a perpetual inventory system ) Sept 30 Recorded accrued interest for the Pippen note Oct 1 Issued a $22,800, 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 $30,000 note and paid $8,600 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 PART B (b) Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts (Use T accounts ) PART C Show the balance sheet presentation of notes payable and interest payable at December 31 PART D How much interest expense relating to notes payable did Ehler incur during the year (a) Prepare journal entries for the transactions noted above (Credit account titles are automatically indented when amount is entered Do not indent manually Record journal entries in the order presented in the problem )

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Problem 10-02A (Part Level Submission) Sheridan Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of

Problem 10-02A (Part Level Submission)

Sheridan Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Sheridan 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 6% and is due December 1. (Sheridan uses a perpetual inventory system.)
Sept. 30		Recorded accrued interest for the Pippen note.
Oct. 1		Issued a $22,800, 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 $30,000 note and paid $8,600 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.

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PART B

(b)

Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts. (Use T-accounts.)

PART C

Show the balance sheet presentation of notes payable and interest payable at December 31.

PART D

How much interest expense relating to notes payable did Ehler incur during the year?

(a) Prepare journal entries for the transactions noted above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)