| Problem 10-2A The following are selected transactions of Graves Company. Graves prepares financial statements quarterly. | Jan. 2 | Purchased merchandise on account from Ally Company, $34,350, terms3/10, n/30. (Graves uses the perpetual inventory system.) | | Feb. 1 | Issued a6%,2-month, $34,350note to Ally in payment of account. | | Mar. 31 | Accrued interest for2months on Ally note. | | Apr. 1 | Paid face value and interest on Ally note. | | July 1 | Purchased equipment from Clark Equipment paying $17,110in cash and signing a7%,3-month, $38,240note. | | Sept. 30 | Accrued interest for3months on Clark note. | | Oct. 1 | Paid face value and interest on Clark note. | | Dec. 1 | Borrowed $13,500from the Jonas Bank by issuing a3-month,6% note with a face value of $13,500. | | Dec. 31 | Recognized interest expense for1 month on Jonas Bank note. | |
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| Prepare journal entries for the listed transactions and events. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) | Date | Account Titles and Explanation | Debit | Credit | | Jan. 2 | | | | | | | | | Feb. 1 | | | | | | | | | Mar. 31 | | | | | | | | | Apr. 1 | | | | | | | | | | | | | July 1 | | | | | | | | | | | | | Sept. 30 | | | | | | | | | Oct. 1 | | | | | | | | | | | | | Dec. 1 | | | | | | | | | Dec. 31 | | | | | | | | | Show List of Accounts | | Link to Text | Link to Video | |
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| | Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Post entries in the order of journal entries in the previous question.) |
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