Notes Payable, Interest Payable, and Interest Expense
Not what you're looking for?
Post to the accounts Notes Payable, Interest Payable, and Interest Expense.
---
P2-2A The following are selected transactions of Detroit Company. Detroit prepares financial statements quarterly. (A perpetual inventory system is used.)
Jan. 2 Purchased merchandise on account from Teresa Speck Company, $15,000, terms 2/10, n/30. Feb. 1 Issued a 10%, 2-month, $15,000 note to Teresa Speck in payment of account.
Mar. 31 Accrued interest for 2 months on Teresa Speck note.
Apr. 1 Paid face value and interest on Teresa Speck note.
July 1 Purchased equipment from Scottie Equipment paying $11,000 in cash and signing a 10%, 3-month, $24,000 note.
Sept. 30 Accrued interest for 3 months on Scottie note.
Oct. 1 Paid face value and interest on Scottie note.
Dec. 1 Borrowed $10,000 from the Federation Bank by issuing a 3-month, 9%-interest-bearing note with a face value of $10,000.
Dec. 31 Recognized interest expense for 1 month on Federation Bank note.
1. Post to the accounts Notes Payable, Interest Payable, and Interest Expense.
2. Show the balance sheet presentation of notes payable at December 31.
3. What is total interest expense for the year?
---
Purchase this Solution
Solution Summary
This posts to the account of Notes Payable, Interest Payable, and Interest Expense
Solution Preview
Post to the accounts Notes Payable, Interest Payable, and Interest Expense.
---
P2-2A The following are selected transactions of Detroit Company. Detroit prepares financial statements quarterly. (A perpetual inventory system is used.)
Jan. 2 Purchased merchandise on account from Teresa Speck ...
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.