Question
Sheridan Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Sheridan had the following
Sheridan Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Sheridan 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. (Sheridan uses a perpetual inventory system.) | |
Sept. 30 | Recorded accrued interest for the Pippen note. | |
Oct. 1 | Issued a $22,800, 10%, 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 $30,000 note and paid $9,300 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 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 | Paid principal and interest on the Pippen note. | |
Dec. 31 | Recorded accrued interest for the Prime Bank note and the vehicle note. |
- Prepare journal entries for the transactions noted above
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