Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 1 Cullumber Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Cullumber had

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Question 1 Cullumber Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Cullumber had the following transactions related to notes payable. Sept. 1 Issued a $15,600 note to Pippen to purchase inventory. The 3-month note payable bears interest of 7% and is due December 1. (Cullumber uses a perpetual Inventory system.) Sept. 30 Recorded accrued Interest for the Pippen note. Oct. 1 Issued a $18,000, 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 $25,200 note and paid $8,100 cash to purchase a vehicle to transport clients to nearby cimbing 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 Pald 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 entered. Do not Indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Credit Debit 2 15600 Sept. 1 Inventory Notes Payable 15600 Sept. 30 Interest Expense 91 Interest Payable Oct 1 Equipment 18000 Notes Payable 18000 Oct 31 Interest Expense 211 Notes Payable 18000 Oct. 31 Interest Expense 211 Interest Payable 211 Nov. 1 Equipment 25200 SO Notes Payable 17100 Cash 8100 Nov. 30 Interest Expense 325 x Interest Payable 325 Nov. 1 Notes Payable 15600 273 Interest Payable 15873 Cash 234 Dec. 31 Interest Expense 234 Interest Payable SHOW LIST OF ACCOUNTS Notes Payable 12/1 15600 9/1 15600 10/1 18000 11/1 17100 IX 12/31 Bal. 50700 Interest Expense 9/30 91 10/31 211 11/30 325 DDODO X 12/31 234 12/31 Bal. 861 Interest Payable 12/1 273 9/30 91 10/31 211 11/30 325 UNNI 12/31 234 12/31 Ball 861 Your answer is partially correct. Try again. Show the balance sheet presentation of notes payable and interest payable at December 31. CULLUMBER CORPORATION Balance Sheet (Partial) December 31, 2022 Current Liabilities Notes Payable 35100 Interest Payable 588 SHOW LIST OF ACCOUNTS LINK TO TEXT x Your answer is incorrect. Try again. How much interest expense relating to notes payable did Cullumber incur during the year? X Interest expense incurred during the year 234 SHOW LIST OF ACCOUNTS

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Accounting Volume 2

Authors: Frank Wood, Alan Sangster

6th Edition

0273039148, 9780273039143

More Books

Students also viewed these Accounting questions