The following are selected transactions of Blanco Company. Blanco prepares finan

Question

The following are selected transactions of Blanco Company. Blanco prepares financial statements quarter Jan. 2 Purchased merchandise on account from Nunez Feb. 1 Issued a 9%, 2-month, $31,000 note to Nunez in payment of account. Mar 31 Accrued interest for 2 months on Nunez note. Apr. 1 Paid face value and interest on Nunez note. Company, $31,000, terms 3/10, n/30. (Blanco uses the perpetual inventory | July Sept. Oct. Dec. Dec. 1 30 1 1 31 Purchased equipment from Marson Equipment paying $13,000 in cash and signing a 10%, 3-month. S68.400 note. Accrued interest for 3 months on Marson note. Paid face value and interest on Marson note. Borrowed $22,800 from the Paola Bank by issuing a 3-month, 8% note with a face value of $22,800. Recognized interest expense for 1 month on Paola Bank note.

Explanation / Answer

Journal Entries :-

T-Accounts:-

Notes Payable A/c :-

Interest Payable A/c :-

Interest Expense :-

Balance Sheet :-

Date Particulars Debit($) Credit($) Jan. 2 Inventory A/c Dr. 31000 To Accounts Payable A/c 31000 Feb. 1 Accounts Payable A/c Dr. 31000 To Notes Payable A/c 31000 Mar. 31 Interest Expense A/c Dr.($31000*9%*(2/12)) 465 To Interest Payable A/c 465 Apr. 1 Notes Payable A/c Dr. 31000 Interest Payable A/c Dr. 465 To Cash A/c 31465 Jul. 1 Equipment A/c Dr. 81400 To Cash A/c 13000 To Notes Payable A/c 68400 Sep. 30 Interest Expense A/c Dr.($68400*10%*(3/12)) 1710 To Interest Payable A/c 1710 Oct. 1 Notes Payable A/c Dr. 68400 Interest Payable A/c Dr. 1710 To Cash A/c 70110 Dec. 1 Cash A/c Dr. 22800 To Notes Payable A/c 22800 Dec. 31 Interest Expense A/c Dr.($22800*8%*(1/12)) 152 To Interest Payable A/c 152

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