Question 4 Cheyenne Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Cheyenne had the following transactions related to notes payable Sept. Issued a $13,200 note to Pippen to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1, (Cheyenne uses a perpetual inventory 1 system.) ept. Recorded accrued interest for the Pippen not,e 30 Oct. 1 Issued a $20,400, 9%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1 Recorded accrued interest for the Pippen note and the Prime Bank note 31 Nov. 1 Issued a $30,000 note and paid $8,700 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 6% and matures in 12 months. Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note Paid principal and interest on the Pippen note Recorded accrued interest for the Prime Bank note and the vehicle note 30 Dec. 1 31 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 Sept. 1Inventory 13200 Notes Payable 13200 Windows [] windows Sept. 30 Interest Expense Sept. 30 Interest Expense Accrued Pension Liability Oct. 1 20400 Notes Payable 20400 Oct. 31Interest Expense 219 Accrued Pension Liability 219 Nov. 1Equipment 38700 Cash 8700 Notes Payable 30000 Nov. 30 Interest Expense 369 Accrued Pension Liability 369 Dec. 1Notes Payable 13200 Accrued Pension Liability 198 Cash 13398 ec. 31 Interest Expense 303 Dec. 31 Interest Expense 303 Accrued Pension Liability 303 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 12/1 13200 9/1 13200 10/1 2040 3000 12/31 Bal. Interest Expense 9/30 10/31 - 11/30 - 12/31 219 369 303 Windows Windows Interest Payable 9/30 10/31 - 11/30 v 12/31 - 12/1 219 369 303 Show the balance sheet presentation of notes payable and interest payable at December 31. CHEYENNE CORPORATION Balance Sheet (Partial) December 31, 2017 Current Liabilities Notes Payable Interest Payable Show the balance sheet presentation of notes payable and interest payable at December 31. CHEYENNE CORPORATION Balance Sheet (Partial) December 31, 2017 Current Liabilities Notes Payable Interest Payable How much interest expense relating to notes payable did Cheyenne incur during the year? Interest expense incurred during the year
