The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly. Jan. 2 Purchased merchandise

Question:

The following are selected transactions of Blanco Company. Blanco prepares quarterly.
Jan. 2 Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.)
Feb. 1 Issued a 9%, 2-month, $30,000 note to Nunez in payment of account.
Mar. 31 Accrued interest for 2 months on Nunez note.
Apr. 1 Paid and interest on Nunez note.
July 1 Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $60,000 note.
Sept. 30 Accrued interest for 3 months on Marson note.
Oct. 1 Paid and interest on Marson note.
Dec. 1 Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with a of $24,000.
Dec. 31 Recognized interest expense for 1 month on Paola Bank note.
Instructions
(a) Prepare journal entries for the listed transactions and events.
(b) Post to the accounts Notes Payable, Interest Payable, and Interest Expense.
(c) Show the presentation of notes and interest payable at December 31.
(d) What is total interest expense for the year?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...