The following are selected transactions of BlaRsa Company. BlaREA prepares finan
ID: 2430854 • Letter: T
Question
The following are selected transactions of BlaRsa Company. BlaREA prepares financial statements quarterly. Jan. Purchased merchandise on account from Nunez Company, $26,400, terms 2/10, n/30. (BlaRsa uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $26,400 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 MAS00 Equipment paying $11,900 in cash and signinq a 1096, 3- month, $52,800 note. Sept.30 Accrued interest for 3 months on Marsoo note. Oct. 1 Paid face value and interest on Marsoo note. Dec. 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. 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 Account Titles and Explanation Debit Credit Apr. 1 Oct. 1Explanation / Answer
Date
General Journal
Debit
Credit
2-Jan
Merchandise Inventory
$ 26,400.00
Accounts Payable
$ 26,400.00
(merchandise Purchased)
1-Feb
Accounts payable
$ 26,400.00
Notes payable
$ 26,400.00
(notes issued against accounts payable)
31-Mar
Interest Expense
$ 396.00
Interest Payable
$ 396.00
(Interest on notes payable for 2 months @9%)
1-Apr
Notes Payable
$ 26,400.00
Interest Payable
$ 396.00
Cash
$ 26,796.00
(notes payable paid along with interest)
1-Jul
Equipment
$ 64,700.00
Cash
$ 11,900.00
Notes Payable
$ 52,800.00
(equipment purchased)
30-Sep
Interest Expense
$ 1,320.00
Interest Payable
$ 1,320.00
(Interest on notes payable for 3 months @10%)
1-Oct
Notes Payable
$ 52,800.00
Interest Payable
$ 1,320.00
Cash
$ 54,120.00
(notes payable paid along with interest)
1-Dec
Cash
$ 21,600.00
Notes Payable
$ 21,600.00
(notes payable issued)
31-Dec
Interest Expense
$ 144.00
Interest Payable
$ 144.00
(Interest on notes payable for 1 months @8%)
Notes Payable
cash
$ 26,400.00
Accounts payable
$ 26,400.00
Cash
$ 52,800.00
Equipment
$ 52,800.00
Closing balance
$ 21,600.00
Cash
$ 21,600.00
$ 100,800.00
$ 100,800.00
Interest Payable
Cash
$ 396.00
Interest Expense
$ 396.00
Cash
$ 1,320.00
Interest Expense
$ 1,320.00
Closing balance
$ 144.00
Interest Expense
$ 144.00
$ 1,860.00
$ 1,860.00
Interest Expense
Interest Payable
$ 396.00
Clsoing Balance
$ 1,860.00
Interest Payable
$ 1,320.00
Interest Payable
$ 144.00
$ 1,860.00
$ 1,860.00
Blanco Company
Balance sheet(Partial)
December 31.
Liabilities
Current Liabilities
Notes Payable
$ 21,600.00
Interest payable
$ 144.00
Date
General Journal
Debit
Credit
2-Jan
Merchandise Inventory
$ 26,400.00
Accounts Payable
$ 26,400.00
(merchandise Purchased)
1-Feb
Accounts payable
$ 26,400.00
Notes payable
$ 26,400.00
(notes issued against accounts payable)
31-Mar
Interest Expense
$ 396.00
Interest Payable
$ 396.00
(Interest on notes payable for 2 months @9%)
1-Apr
Notes Payable
$ 26,400.00
Interest Payable
$ 396.00
Cash
$ 26,796.00
(notes payable paid along with interest)
1-Jul
Equipment
$ 64,700.00
Cash
$ 11,900.00
Notes Payable
$ 52,800.00
(equipment purchased)
30-Sep
Interest Expense
$ 1,320.00
Interest Payable
$ 1,320.00
(Interest on notes payable for 3 months @10%)
1-Oct
Notes Payable
$ 52,800.00
Interest Payable
$ 1,320.00
Cash
$ 54,120.00
(notes payable paid along with interest)
1-Dec
Cash
$ 21,600.00
Notes Payable
$ 21,600.00
(notes payable issued)
31-Dec
Interest Expense
$ 144.00
Interest Payable
$ 144.00
(Interest on notes payable for 1 months @8%)
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