Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Problem 10-02A (Part Level Submission) Sheridan Corporation sets rock-cimbing 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 $15,600 note to open to purchase inventory. The 3-month note payable bears interest of 7% and is due December 1 (Sheridan uses a perpetual Inventory system) Sept. 30 Recorded accrued interest for the Plopen note. Oct. 1 issued a $22,800, 10%, 4 month note to Prime Bank to finance the purchase of a new cimbing wall for advanced climbers. The note is due February Recorded accrued interest for the open note and the Prime Banknote Nov. 1 Issued a $30,000 note and paid $9,300 cash to purchase a vehide to transport clients to nearby climbing stes as part of a new series of climbing classes. This note bears interest of 8% and matures in 12 months Nov. 30 Recorded accrued interest for the open note, the Prime Banknote, and the vehicle note Dec 1 Paid principal and interest on the Popen note Dec 31 Recorded accrued interest for the Prime Banknote and the vehide nota Oct. 31 El your answer is correct Prepare yournal 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.) Account Titles and Explanation Credit Date Debit Sept. 1 tnventory 15600 Notes Payable 15500 Seot. 30 interest Expense 91 Interest Payable 91 Oct 1 Equipment 22800 Notes Payable 22800 Oct 11 interest Expense 201 Interest Payable 280 Now Laurent 19300 Cash 9300 Notes Payable 30000 Nov. 30 interest Expense 481 Interest Payable 481 Dec. 1 Notes Payable 15600 Interest Payable 273 Cash 15873 Dec. 31 Interest Expense 390 Interest Payable 390 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Post the above entries to the Notes Payable, Interest Payable, and interest Expense accounts. (Post entries in the order of journal entries posted in the previous part of the question.) Notes Payable 9/1 10/1 1111 12/1 Interest Expense Interest Payable x X V

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

Audit And Assurance Q And A 2016

Authors: ACA Simplified

1st Edition

1523200464, 978-1523200467

More Books

Students also viewed these Accounting questions