Exercise 10-1 Oriole Company had the following transactions involving notes paya
ID: 2571239 • Letter: E
Question
Exercise 10-1
Oriole Company had the following transactions involving notes payable.
Prepare journal entries for each of the transactions. (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
(To record adjusting entry for First National Bank note)
(To record adjusting entry for Lyon County State Bank note)
July 1, 2019 Borrows $59,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2019 Borrows $71,400 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2019 Prepares adjusting entries. Feb. 1, 2020 Pays principal and interest to Lyon County State Bank. Apr. 1, 2020 Pays principal and interest to First National Bank.Explanation / Answer
Journal entries :
date accounts & explanation debit credit 2019, july 1 Cash a/c 59500 8% notes payable a/c 59500 (To record amount borrowed) 2019, nov 1 Cash a/c 71400 6% notes payable a/c 71400 (To record amount borrowed) 2019, dec 31 Interest expenses a/c 3094 Interest payable a/c 3094 (To record accured interest) 2020, feb 1 Notes payable a/c 71400 Interest payable a/c 714 Interest expenses a/c 357 Cash a/c 72471 (To record maturity of notes) 2020 apr 1 Notes payable a/c 59500 Interest payable a/c 2380 Interest expenses a/c 1190 Cash a/c 63070 (To record maturity of notes)Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.