*Problem 10-5A (Part Level Submission) Bramble Corporation sells rock-climbing p

Question

*Problem 10-5A (Part Level Submission) Bramble Corporation sells rock-climbing products and also operates an indoor dimbing facility for climbing enthusiasts. During the last part of 2019, Bramble had the following transactions related to notes payable. Sept. 1 Sept. 30 Oct. 1 Oct. 31 Nov. 1 Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1. (Bramble uses a perpetual inventory system.) Recorded accrued interest for the Pippen note. Issued a $20,400, 8%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1. Recorded accrued interest for the Pippen note and the Prime Bank note. Issued a $25,200 note and paid $8,500 cash to putriase a vehicle to transport clients to nearby climbing sites as part of a new series of dimbing dasses. This note bears interest of 8% and matures in 12 months Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehide note Dec. 1 Paid principal and interest on the Pippen note Dec. 31 Recorded acorued interest for the Prime Bank note and the vehicle note. Your answer is correct. Prepare journal entries for the transactions noted above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record fournal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit pt. 1Invento otes Pa Capt. 3cRuterest Expense nterest Paya 31 Interest Ex 25200 nterest Ex nterest Payable 24400 Dec. Notes Payab nterest P per- ec. 31Interest Ex nterest Paya

Explanation / Answer

Notes payable account :

Interest expenses account :

Interest payable account :

Cash 14400 Inventory 14400 Balance b/d 45600 Equipment 20400 Equipment 25200 60000 60000

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