Bedu Problem 11-2A The following are selected transactions of Blanco Company. Bl

Question

Bedu Problem 11-2A The following are selected transactions of Blanco Company. Blanco prepar an. 2 Purchased merchandise on account from Nunez Feb. 1 Issued a 9%, 2-month, s22,000 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. Chapter 11 es financial statements quarterly Company, $22.000, terms 3/10, n/30. (Blanco uses the perpetual inventory system.) ew Score from Marson Equipment paying $12,500 in cash and signing a 10%, 3-month, $60,000 note. Sept. Oct. Dec. Dec. 30 1 1 31 Accrued interest for 3 months on Marson note. Paid face value and interest on Marson note. Borrowed $34,800 from the Paola Bank by issuing a 3-month, 8% note with a tace value of S34.800. Recognized interest expense for 1 month on Paola Bank note entries for the listed transactions and events. (Credi it account tities are automatically indented when amount is entered. Prepare Do not indent manually. Record journal entries in the order presented in the problem.) ·· Debit Credit

Explanation / Answer

Date

Description

Debit

Credit

Jan-02

Merchanidse Inventory

22000

   Accounts payable

22000

(Being merchandize purchased on account from nunez co)

Feb-01

Accounts Payble

22000

   Notes payable

22000

(being 9% note issued to nunez)

Mar-31

Interest expense

330

     Interest payable

330

(22000*9%*2/12)

(Accrued interest incurred)

Apr-01

Notes payable

22000

Interest payable

330

    Cash

22330

Amount paid along with interest)

Jul-01

Equipment

12500

    Cash

60000

    Notes Payable

72500

(Being purchase of equipment partly by cash and partly by note)

Sep-30

Interest expense

1500

     Interest Payable

1500

(60000*10%*3/12)

(Being interest incurred)

Oct-01

Notes Payable

60000

Interest Payable

1500

     Cash

61500

Amount paid along with interest)

Dec-01

Cash

34800

    Notes Payable

34800

(Amount borrowed from poola bank)

Dec-31

Interest expense

232

      Interest payable

232

(34800*8%*1/12)

Date

Description

Debit

Credit

Jan-02

Merchanidse Inventory

22000

   Accounts payable

22000

(Being merchandize purchased on account from nunez co)

Feb-01

Accounts Payble

22000

   Notes payable

22000

(being 9% note issued to nunez)

Mar-31

Interest expense

330

     Interest payable

330

(22000*9%*2/12)

(Accrued interest incurred)

Apr-01

Notes payable

22000

Interest payable

330

    Cash

22330

Amount paid along with interest)

Jul-01

Equipment

12500

    Cash

60000

    Notes Payable

72500

(Being purchase of equipment partly by cash and partly by note)

Sep-30

Interest expense

1500

     Interest Payable

1500

(60000*10%*3/12)

(Being interest incurred)

Oct-01

Notes Payable

60000

Interest Payable

1500

     Cash

61500

Amount paid along with interest)

Dec-01

Cash

34800

    Notes Payable

34800

(Amount borrowed from poola bank)

Dec-31

Interest expense

232

      Interest payable

232

(34800*8%*1/12)

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