C.S. Carla Vista Company had the following transactions involving notes payable.July 1, 2022 Borrows $92,000 from First National Bank by signing a 9-month, 8% note.Nov. 1, 2022 Borrows $95,000 from Lyon County State Bank by signing a 3-month, 6% note.Dec. 31, 2022 Prepares adjusting entries.Feb. 1, 2023 Pays principal and interest to Lyon County State Bank.Apr. 1, 2023 Pays principal and interest to First National Bank.Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Note payable are a form of debt taken by a company on which it has to pay regular interest payments.

Answered: C.S. Carla Vista Company had the…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money

Section: Chapter Questions

Problem 9.1AP

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C.S. Carla Vista Company had the following transactions involving notes payable.

July 1, 2022		Borrows $92,000 from First National Bank by signing a 9-month, 8% note.
Nov. 1, 2022		Borrows $95,000 from Lyon County State Bank by signing a 3-month, 6% note.
Dec. 31, 2022		Prepares adjusting entries.
Feb. 1, 2023		Pays principal and interest to Lyon County State Bank.
Apr. 1, 2023		Pays principal and interest to First National Bank.

Prepare journal entries for each of the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

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