Q1

Fischer Company borrowed $84,000 from National bank on August 1 for three months; 5% interest is payable the first of each month, starting September 1. Fischers year end is September 30 and the company records adjusting entries only at that time.

Q2

Prepare journal entries that National Bank would record for: (1) the receipt of interest on September 1, (2) the accrual of interest income on September 30, (3) the receipt of interest on October 1, and (4) the receipt of interest on November 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit ptember 1 Interest Income 1400 Cash 1400 ptember 30 Interest Income 1400 Interest Receivable 1400 tober 1 Interest Income 1400 Cash 1400 wember 1 Interest Income 1400 Cash 1400 Blue Spruce Limited reported the following selected data for the year ended December 31, 2021: purchases $226,200; purchase returns and allowances $7,620; purchase discounts $23,700, freight in $6,000; freight out $13,140; beginning inventory $121,800; and ending inventory $139,200. (a) Prepare the cost of goods sold section for Blue Spruce in a multiple-step statement of income. Cost of goods sold Beginning Inventory Purchases $ 226200 Less Purchase Returns and Allowances 7620 Purchase Discounts 23700 226200 Net Purchases 194880 Add: Freight in 6000 Cost of Goods Purchased Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold $