Sorry my last questio was unreadable. Can someone help me with this one please?

Question

Sorry my last questio was unreadable. Can someone help me with this one please?

Problem 10-2A

The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly

2

Jan.

2

Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $30,000 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. July 1 Purchased equipment from Marson Equipment paying $10,800 in cash and signing a 10%, 3-month, $54,000 note. Sept. 30 Accrued interest for 3 months on Marson note. Oct. 1 Paid face value and interest on Marson note. Dec. 1 Borrowed $30,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $30,000. Dec. 31 Recognized interest expense for 1 month on Paola Bank note. Prepare jourral entries for the listed transations and everts (Credit account titles are automaticaly indented when amount is entered. Do not indent manually. Record journal entries in the order presented in sh pwoblem Dute Account Tiales and Explasution Debi Crede Oa. 1 Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Post entries in the order of journal entries presented in the previous part.) Notes Payable Interest Payable how the balance sheet presentation of notes and interest payable at December 31 Blanco Company Balance Sheet (Partial) What is total interest expense for the year? Toral inceres

Explanation / Answer

To interest Payable. 200

Notes Payable A/c

Balance $30000 Cr

Interest Payable A/c

Balance $200 Cr.

Interest Exp A/c

Total Interest Exp $2000

Balance Sheet (Partial)

Liabilities

Notes Payable. $30000

Interest Payable. $200

Date Particulars Debit Credit 2 Jan Purchases A/C Dr 30000 To Nunez Co. 30000 Feb 1 Nunez Co A/c Dr 30000 To Notes Payable 30000 March 31 Interest A/c Dr. 450 To Interest Payable 450 April 1 Notes Payable A/c Dr 30000 Interest Payable A/c Dr 450 To Cash 30450 (Paid to Nunez Co.) July 1 Equipment A/c Dr 64000 To Cash 10000 To Notes Payable 54000

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