ESOURCES Exercise 10-1 C.S. Lewis Company had the following transactions Involvi
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ESOURCES Exercise 10-1 C.S. Lewis Company had the following transactions Involving nates payable. sion) (Part sion) July 1, 2017 Borrows $53,000 from First National Bank by signing a 9-month, B% note. Nov. 1, 2017 Borrows $63,600 from Lyon County State Bank by signing a 3-morth, 6oe Dec.31, 2017 Prepares adjusting entries. Feb. 1, 2018 Pays principal and interest to Lyon County State Bank. Exersise Apr. 1, 2018 Pays principal and interest to First National Bank Prepare journal entries for each of the transactions. (Credit account titles are entries in the order presented in the problem.) automaticaly Indented when amoust is entered. Do not indent ity Recon oura Date Account Titles and Explanation 12 in s by Study (To record adjusting entry for First National Bank note) To record adjusting entry for Lyon County State Bank note 1 2000-2012lahnwterassorna. All Rights Reserved. A Division e, 2shnmitilaus 1 Privacy Polsx ent Next *Explanation / Answer
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Journal Entry Debit Credit 1-Jul-17 Cash $53,000 FNB-Notes Payable $53,000 Nov. 1, 2017 Cash $63,600 Notes Payable $63,600 Dec. 31, 2017 Interest Expense $2,120 Interst Payable $2,120 Dec. 31, 2017 Interest Expense $636 Interst Payable $636 Feb. 1, 2018 Notes Payable $63,600 Interst Payable $636 Cash $64,236 Apr. 1, 2018 Notes Payable $53,000 Interst Payable $2,120 Cash $55,120 Interest Calculation: First National Bank : $53000 *(6/12)*(8%) = $2,096 Lyon County State Bank = $63,600 *(2/12)*(6%) =$636Related Questions
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