Problem 11-2A (Part Level Submission) The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly. Jan. 2 Feb. 1 Mar. 31 Apr. 1 July 1 Sept. 30 Purchased merchandise on account from Nunez Company, $36,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.) Issued a 9%, 2-month, $36,000 note to Nunez in payment of account. Accrued interest for 2 months on Nunez note. Paid face value and interest on Nunez note. Purchased equipment from Marson Equipment paying $10,500 in cash and signing a 10%, 3-month, $69,600 note. Accrued interest for 3 months on Marson note. Paid face value and interest on Marson note. Borrowed $22,800 from the Paola Bank by issuing a 3-month, 8% note with a face value of $22,800. Recognized interest expense for 1 month on Paola Bank note. Oct. 1 Dec. 1 Dec. 31 (a) Your answer is correct. Prepare journal entries for the listed transactions and events. (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 Jan. 2 Inventory 36000 Accounts Payable 36000 ( Feb. 1 Accounts Payable 36000l Notes Payable 36000 Mar 31 Interest Expense 5401 Interest Payable 540 Apr.1 Notes Payable 36000 Interest Payable 540 Cash 36540 July 1 Equipment 80100 Cash 10500 Notes Payable 69600 Sept.30 Interest Expense 1740 Interest Payable 1740 Oct. 1 Notes Payable 69600 Interest Payable 1740 Cash 71340 Dec. 1 Cash PHOHOHI 22800 Notes Payable 22800 Dec.31 Interest Expense 152 Interest Payable 152 (b) Your answer is correct. Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Post entries in the order of journal entries presented in the previous part.) Notes Payable 4/1 36000 2/1 36000 10/1 69600 7/1 . 69600 12/1 + 22800 12/31 Bal. 22800 Interest Payable 4/1 540 3/31 540 10/1 1740 9/30 1740 12/31 152 12/31 Bal. 152 Interest Expense 3/31 540 9/30 1740 12/31 152 12/31 Bal. 2432 (c) Your answer is correct. Show the balance sheet presentation of notes and interest payable at December 31. Blanco Company Balance Sheet (Partial) December 31 Current Liabilities Notes Payable 22800 $ 8 > Interest Payable 152 22952 $ SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT (d) What is total interest expense for the year? Total interest $