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

Question

The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly.

Jan. 2 Purchased merchandise on account from Nunez Company, $34,800, terms 3/10, n/30. (Blanco uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $34,800 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.
July 1 Purchased equipment from Marson Equipment paying $11,400 in cash and signing a 10%, 3-month, $52,800 note. Sept. 30 Accrued interest for 3 months on Marson note.
Oct. 1 Paid face value and interest on Marson note.
Dec. 1 Borrowed $21,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $21,600. Dec. 31 Recognized interest expense for 1 month on Paola Bank note.
The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly.

Jan. 2 Purchased merchandise on account from Nunez Company, $34,800, terms 3/10, n/30. (Blanco uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $34,800 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.
July 1 Purchased equipment from Marson Equipment paying $11,400 in cash and signing a 10%, 3-month, $52,800 note. Sept. 30 Accrued interest for 3 months on Marson note.
Oct. 1 Paid face value and interest on Marson note.
Dec. 1 Borrowed $21,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $21,600. Dec. 31 Recognized interest expense for 1 month on Paola Bank note.
1st picture: Prepare journal entries for the list of transactions and events.
2nd picture: Post to the account snows payable, interest payable, and interest expense.
3rd picture: show the balance sheet presentation notes and interest payable at December 31. Jan. 2 Purchased merchandise on account from Nunez Company, $34,800, terms 3/10, n/30. (Blanco uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $34,800 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.
July 1 Purchased equipment from Marson Equipment paying $11,400 in cash and signing a 10%, 3-month, $52,800 note. Sept. 30 Accrued interest for 3 months on Marson note.
Oct. 1 Paid face value and interest on Marson note.
Dec. 1 Borrowed $21,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $21,600. Dec. 31 Recognized interest expense for 1 month on Paola Bank note.
Pad 1:39 AM 57% Lesson 10/Chapter10 Graded Homework The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly Purchased merchandise on account from Nunez Company, $34,800, terms 3/10, n/30.(Blanco uses the perpetu inventory system.) Jan. ? Feb. 1 Issued a 9%, 2-month, $34,800 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. July Purchased equipment from Marson Equipment paying $11,400 ?, cash and signing a 10%, 3-month, $52,800 Review Results by Study Sept.30 Accrued interest for 3 months on Marson note Oct. 1 Paid face value and interest on Marson note. Dec. 1 Borrowed $21,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $21.60 Dec. 31 Recognized interest expense for 1 month on Paola Bank note Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is entered. Do not indent manually, Record journal entries in the order presented in the problem Date Accoust Titles and Esplanation Apr, 1 Oct. 1 Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Post entries in the order of jourmal entries presented in the previous part.

Explanation / Answer

Interest Expense for the year= $1,986

Debit Credit Jan-02 Inventory A/c 34800 to Accounts Payable A/c 34800 Feb-01 Accounts Payable A/c 34800 To Notes Payable A/c 34800 Mar-31 Interest Expense A/c (34800*9%/12*2) 522 To Interest Payable A/c 522 Apr-01 Notes Payable A/c 34800 Interest Payable A/c 522 To Cash A/c 35322 Jul-01 Equipment A/c 64200 To Cash A/c 11400 To Note payable A/c 52800 Sep-30 Interest Expense A/c (52800*10%/12*3) 1320 To Interest Payable A/c 1320 Oct-01 Notes Payable A/c 52800 Interest Payable A/c 1320 To Cash A/c 54120 Dec-01 Cash a/c 21600 To Notes Payable A/c 21600 Dec-31 Interest Expense A/c (21600*8%/12) 144 To Interest Payable A/c 144

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