Reference no: EM132554948
Question 1: How to calculate journal entries & post notes payable, interst payable & interest expense
Sept 1 Issued a 14,400 note to Pipen to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1.
Sept 30 Recorded accrued interest forthe Pipen note.
Oct 1 Issued a $20,400, 8% note to Prime Bank to finance the purtchase of a new climbing wall for advanced climbers.
Oct 31 Recorded accrued interest for the Pipen note and the Prime bank note.
Nov 1 Issued a $25,200 note and paid $8,500 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 principle and interest on the Pippen note.
Dec 31 Recorded accrued nterest for the Prime Bank note and the vehicle note.
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How to calculate journal entries and post notes payable
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