C.S. Ivanhoe Company had the following transactions involving notes payable.July 1, 2022 Borrows $77,000 from First National Bank by signing a 9-month, 8% note.Nov. 1, 2022 Borrows $80,000 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.)DateAccount Titles and ExplanationDebitCreditchoose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amountchoose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amountchoose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023enter an account title to record accrual of interest from First National Bankenter a debit amountenter a credit amount enter an account title to record accrual of interest from First National Bankenter a debit amountenter a credit amount (To record accrual of interest from First National Bank)  choose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023enter an account title to record accrual of interest from Lyon County State Bankenter a debit amountenter a credit amount enter an account title to record accrual of interest from Lyon County State Bankenter a debit amountenter a credit amount (To record accrual of interest from Lyon County State Bank)  choose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amountchoose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount enter an account titleenter a debit amountenter a credit amount eTextbook and Media

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Asked Dec 7, 2019
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C.S. Ivanhoe Company had the following transactions involving notes payable.

July 1, 2022   Borrows $77,000 from First National Bank by signing a 9-month, 8% note.
Nov. 1, 2022   Borrows $80,000 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.)

Date
Account Titles and Explanation
Debit
Credit
choose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023
enter an account title
enter a debit amount
enter a credit amount
 
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023
enter an account title
enter a debit amount
enter a credit amount
 
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023
enter an account title to record accrual of interest from First National Bank
enter a debit amount
enter a credit amount
 
enter an account title to record accrual of interest from First National Bank
enter a debit amount
enter a credit amount
  (To record accrual of interest from First National Bank)    
choose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023
enter an account title to record accrual of interest from Lyon County State Bank
enter a debit amount
enter a credit amount
 
enter an account title to record accrual of interest from Lyon County State Bank
enter a debit amount
enter a credit amount
  (To record accrual of interest from Lyon County State Bank)    
choose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023
enter an account title
enter a debit amount
enter a credit amount
 
enter an account title
enter a debit amount
enter a credit amount
 
enter an account title
enter a debit amount
enter a credit amount
 
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date                                                           July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023
enter an account title
enter a debit amount
enter a credit amount
 
enter an account title
enter a debit amount
enter a credit amount
 
enter an account title
enter a debit amount
enter a credit amount
 
enter an account title
enter a debit amount
enter a credit amount
 

eTextbook and Media

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Expert Answer

Step 1

Journal entry:

 

Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. The journal has two aspects. They are debit aspect and credit aspect.

 

Rules of debit and credit:

 

“An increase in an asset account, an increase in an expense account, a decrease in liability account, and a decrease in a revenue account should be debited.”

 

Similarly, an increase in liability account, an increase in a revenue account and a decrease in an asset account, a decrease in an expense account should be credited.”

Step 2

Prepare journal entries for each of the transactions.

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Account title and Debit Credit Date Post ref. (in $) Explanation (in $) July 1, 2022 Cash 77,000 Notes payable 77,000 (To record the receipt of the funds from the National Bank F) November 1, Cash 80,000 2022 Notes payable (To record the receipt of the funds from the State Bank L) 80,000 December 31, Interest expense (1) 3,880 2022 Interest payable 3,880 (To record the accrued interest) February 1, Interest expense 1,600 2023 Interest payable Note payable Interest payable 800 80,000 82,400 (To record the principal and interest amount paid) April 1, 2023 Interest expense Interest payable 513 3,080

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Step 3

Working Note (1):

 

Determine the balance in the Interest Payable a...

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(Interest expense of National Bank F) + Interest expense of both banks = (Interest expense of State bank L) S77,000x 8%x months + 12 S80,000 x 6% x: months 12 = $3, 080 + $800 = S3, 880

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