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P11-2A The following are selected transactions...

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P11-2A The following are selected transactions of Winsky Company. Winsky prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Yokum Company, $30,000, terms 2/10, n/30. Feb. 1 Issued a 9%, 2-month, $30,000 note to Yokum in payment of account. Mar. 31 Accrued interest for 2 months on Yokum note. Apr. 1 Paid face value and interest on Yokum note. July 1 Purchased equipment from Korsak Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note. Sept. 30 Accrued interest for 3 months on Korsak note. Oct. 1 Paid face value and interest on Korsak note. Dec. 1 Borrowed $15,000 from the Otago Bank by issuing a 3-month, 8% interest-bearing note with a face value of $15,000. Dec. 31 Recognized interest expense for 1 month on Otago Bank note. Prepare journal entries for the above transactions and events. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Date Account / Description Debit Credit Jan. 2 $ $ Feb. 1 $ $ Mar. 31 $ $ Apr. 1 $ $ $ July 1 $ $ $ Sept. 30 $ $ Oct. 1 $ $ $ Dec. 1 $ $ Dec. 31 $ $ Post to the accounts Notes Payable, Interest Payable, and Interest Expense. Notes Payable 4/1 2/1 10/1 7/1 12/1 12/31 Bal. Interest Payable 4/1 3/31 10/1 9/30 12/31 12/31 Bal. Interest Expense 3/31 9/30 12/31 12/31 Bal. Show the balance sheet presentation of notes and interest payable at December 31. Current liabilities Notes payable $ Interest payable $ What is total interest expense for the year? $

 

Paper#6619 | Written in 18-Jul-2015

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