Problem 10-02A Pharoah Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Pharoah 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 8% and is due December 1. (Pharoah uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $21,600, 8%, 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 $26,400 note and paid $8,900 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 7% 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. ZYour answer is partially correct. Try again. 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 Debit Credit Date Account Titles and Explanation Sept. 1 Inventory 14400 Notes Payable 14400 Sept. 30 # Interest Expense 96 Interest Payable 96 Oct. 1 Equipment 21600 Notes Payable 21600 Oct. 31 Interest Expense 240 Interest Payable 240 Nov. 1 35300 Cash 8900 Notes Payable 26400 Nov. 30 + Interest Expense 542 Interest Payable 542 Nov. 30 Interest Expense 542 x Interest Payable 542 Dec. 1 Notes Payable 14400 Interest Payable 288 Cash 14688 Dec. 31 Interest Expense 350 Interest Payable 350 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts. Notes Payable 12/1 14400 9/1 14400 10/1 21600 11/1 26400 12/31 Bal. A 48000 Interest Expense 9/30 96 10/31 240 X 11/30 542 12/31 - 350 X 12/31 Bal. A 1228 Interest Payable 12/31 350 12/31 Bal. A 1228 Interest Payable 12/1 4 288 ||| 9/30 4 96 10/31 240 11/30 542 12/31 350 12/31 Bal. 4. 940 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Show the balance sheet presentation of notes payable and interest payable at December 31. PHAROAH CORPORATION Balance Sheet (Partial) December 31, 2022 Current Liabilities Notes Payable 48000 Interest Payable 940 SHOW LIST OF ACCOUNTS LINK TO TEXT * Your answer is incorrect. Try again. How much interest expense relating to notes payable did Pharoah incur during the year? Interest expense incurred during the year 1228 SHOW LIST OF ACCOUNTS
