General Journal Date Description Debit Credit 2013 Nov. 25 Equipment 43,200.00 Notes Payable 43,200.00 Purchase of loading cart with a 60-day, 10% note Dec. 31 Interest Expense 426.08 Interest Payable 426.08 To accrue interest expense 2014 Jan. 24 Notes Payable 43,200.00 Interest Expense Interest Payable 426.08 Cash To record payment for note plus interest for equipment
General Journal Date Description Debit Credit 2013 Nov. 25 Equipment 43,200.00 Notes Payable 43,200.00 Purchase of loading cart with a 60-day, 10% note Dec. 31 Interest Expense 426.08 Interest Payable 426.08 To accrue interest expense 2014 Jan. 24 Notes Payable 43,200.00 Interest Expense Interest Payable 426.08 Cash To record payment for note plus interest for equipment
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter6: Receivables And Inventories
Section: Chapter Questions
Problem 6.2MBA: Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the...
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Part A: Blue Blaze Company, whose fiscal year ends December 31, complete the following transactions involving notes payable:
2013
Nov. 25 Purchased a new loading cart by issuing a 60-day 10% note for $43,200.
Dec. 31 Made the year-end
2014
Jan. 24 Paid off the loading cart note. (Round to the nearest cent.)
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