10-1 Journal Entries for Accounts and Notes Payable Logan Company had the following transactions: Apr 8 Issued a $5,000, 60-day, six percent note payable in payment of an account with Bennett Company May 15 Borrowed $40, 000 from Lincoln Bank, signing a 60-day note at nine percent. June 7 Paid Bennett Company the principal and interest due on the April 8 note payable. July 6 Purchased $12, 000 of merchandise from Bolton Company; signed at 90-day note with ten percent interest. July 14 Paid the the May 15 note due Lincoln Bank. Oct. 2 Borrowed $30, 000 from Lincoln Bank, signing a 120-day note at 12 percent. 4 Defaulted on the note payable to Bolton Company. Required Record these transactions in general journal form. Record any adjusting entries for interest in general form. Logan Company has a December 31 year -end
P10-1
Logan Company had the following transactions:
Apr 8 Issued a $5,000, 60-day, six percent note payable in payment of an account with Bennett Company
May 15 Borrowed $40, 000 from Lincoln Bank, signing a 60-day note at nine percent.
June 7 Paid Bennett Company the principal and interest due on the April 8 note payable.
July 6 Purchased $12, 000 of merchandise from Bolton Company; signed at 90-day note with ten percent interest.
July 14 Paid the the May 15 note due Lincoln Bank.
Oct. 2 Borrowed $30, 000 from Lincoln Bank, signing a 120-day note at 12 percent.
4 Defaulted on the note payable to Bolton Company.
Required
- Record these transactions in general journal form.
- Record any
adjusting entries for interest in general form. Logan Company has a December 31 year -end.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
