Transaction Analysis: Liabilities and Interest Accruals

Required: Record these transactions, using the accounting equation.

Sharons Affairs and Parties (SAAP), a sole proprietorship, engaged in the following

transactions in 2019:

1. SAAP borrowed $150,000 at 10% per year to begin operations.

2. SAAP accrued the first months interest on the loan.

3. SAAP accrued the second months interest.

4. SAAP paid the interest due.

5. Sharon loaned SAAP $10,000 at 24% interest per year.

6. SAAP accrued interest for the next month on both loans.

7. SAAP paid the accrued interest.

8. SAAP repaid first Sharons loan, along with a loan cancellation fee of $2,500.

9. SAAP accrued interest for the next month.

10. SAAP repaid the second loan, along with the accrued interest.