Splish Brothers Inc. had the following transactions involving notes payable. Jul

Question

Splish Brothers Inc. had the following transactions involving notes payable. July 1, 2019 Borrows $61,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2019 Borrows $73,800 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.

I'm just having a little trouble with the second half

Your answer is partially correct. Try agn Splish Brothers Inc. had the following transactions involving notes payable. July 1, 2019 Borrows $61,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2019 Borrows $73,800 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 Prepare journal entries for each of the transactions. (Credit account titles are automatically indented whe Date Account Titles and Explanation Debit Credit July 1, 2019 Cash 61500 Notes Payable 61500 November 1, 2019 |Cash 73800 Notes Payable 73800 December 31, 2019 | |Interest Expense 2460 Interest Payable 2460

Explanation / Answer

ans) July 1, 2019 Cash 61500

Notes payable 61500

November 1 ,2019 Cash 73800

Notes payable 73800

December 31, 2019 Interest expense 2460

Interest payable (First national) 2460

(61500 X8%x 6/12)

December 31, 2019 Interest expense 738

Interest payable (Lyon country) 738

(73,800 X 6% X 2/12)

Feb 1 ,2020 Notes patyable 73800

Interest payable 738

Interest expense * 369

Cash 74907

(* 73800 X 6% X 3/12 -738)

Apr 1, 2020 Notes payable 61500

Interest payable 2460

Interest expense 1230

Cash 65190

* 61500 X 8% X 9/12 - 2460 = 1230

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.