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    Journal entries for Detroit Company

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    I need this exercise performed in excel; additionally part C is still not clear.

    Thanks.

    The following are selected transactions of Detroit Company...

    Please see attached.

    JOURNAL ENTRY
    JAN 2 1.PURCHASES A/C 15000
    TERESSA SPECK COMPANY 15000

    FEB1 2. TERESSA SPECK COMPANY 15000
    NOTES PAYABLEA/C 15000
    MAR 31 3. INTEREST EXPENSE A/C 250
    INTEREST PAYABLE A/C 250
    APR1 4. NOTES PAYABLE A/C 15000
    INTEREST PAYABLE A/C 250
    CASH 15250
    JULY1 5. PURCHASES A/C 35000
    CASH 11000
    SCOTTLE EQUIPMENT 24000
    JULY1 6. SCOTTLE EQUIPMENT 24000
    NOTES PAYABLE A/C 24000
    Sep. 30 INTEREST EXPENSE A/C 600
    INTEREST PAYABLE A/C 600

    Oct1. 7. NOTES PAYABLE A/C 24000
    INTEREST PAYABLE A/C 600
    CASH 24600

    DEC1 8.CASH 10000
    TO NOTES PAYABLE 10000
    Dec 31 9. INTEREST EXPENSE A/C 90
    INTEREST PAYABLE A/C 90
    INTEREST PAYABLE A/C
    Dr. IN$ Cr. IN$
    Date Particulars Amount Date Particulars Amount
    APR1 To Cash 250 MAR31 By Interest expenses 250
    OCT1 To Cash 600 SEP30 By Interest expenses 600
    DEC31 To balance c/d 90 DEC1 BY Interest expenses 90
    940 940
    NOTES PAYABLE A/C
    Dr. IN$ Cr. IN$
    Date Particulars Amount Date Particulars Amount
    APR1 To Cash 15000 FEB1 By Teresa Speck 15000
    OCT1 To Cash 24000 JULY1 By Scottle equip. 24000
    DEC31 To balance c/d 10000 DEC1 BY CASH 10000
    49000 49000
    INTEREST expensesA/C
    Dr. IN$ Cr. IN$
    Date Particulars Amount Date Particulars Amount
    MAR31 To Interest Payable 250
    SEP30 To Interest payable 600
    DEC1 To Interest payable 90 DEC31 By P&L 940
    940 940
    c. BALANCE SHEET PRESENTATION
    IN $
    LIABILITIES
    NOTES PAYABLE -10000 (Not clear!!!!)
    D. Total Interest Expense -$940

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    https://brainmass.com/business/journal-entries/journal-entries-for-detroit-company-43364

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    Solution Preview

    The excel file is attached. The interest expense for last notes payable is 75 and not 90. The question on balance sheet ...

    Solution Summary

    The solution explains how to prepare the journal entries for transactions undertaken by Detroit Company

    $2.49

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