Problem 10-2A

Pronghorn Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Pronghorn 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 7% and is due December 1. (Pronghorn uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $18,000, 10%, 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 $8,300 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 8% 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.

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.)

Date Account Titles and Explanation Debit Credit choose a transaction date Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Nov. 30 Dec. 1 Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Nov. 30 Dec. 1 Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Nov. 30 Dec. 1 Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Nov. 30 Dec. 1 Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Nov. 30 Dec. 1 Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Nov. 30 Dec. 1 Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount Dec. 1 enter an account title for the journal entry on December 1 enter a debit amount enter a credit amount enter an account title for the journal entry on December 1 enter a debit amount enter a credit amount enter an account title for the journal entry on December 1 enter a debit amount enter a credit amount choose a transaction date Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Nov. 30 Dec. 1 Dec. 31 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

SHOW SOLUTION LINK TO TEXT 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 choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose the end date of the accounting period 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit balance choose the end date of the accounting period 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit balance Interest Expense choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose the end date of the accounting period 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit balance choose the end date of the accounting period 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit balance Interest Payable choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit amount choose a transaction date 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit amount choose the end date of the accounting period 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a debit balance choose the end date of the accounting period 9/1 9/30 10/1 10/31 11/1 11/30 12/1 12/31 12/31 Bal. enter a credit balance

LINK TO TEXT LINK TO TEXT

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

PRONGHORN CORPORATION Balance Sheet (Partial) choose the accounting period December 31, 2017 For the Month Ended December 31, 2017 For the Year Ended December 31, 2017 select an opening subsection name Current Assets Current Liabilities Intangible Assets Long-term Investments Long-term Liabilities Property, Plant and Equipment Stockholders' Equity Total Assets Total Current Assets Total Current Liabilities Total Intangible Assets Total Liabilities Total Liabilities and Stockholders' Equity Total Long-term Investments Total Long-term Liabilities Total Property, Plant and Equipment Total Stockholders' Equity enter a balance sheet item $enter a dollar amount enter a balance sheet item enter a dollar amount

LINK TO TEXT LINK TO TEXT

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

Interest expense incurred during the year $enter a dollar amount