Blossom Corporation sells rock-dlimbing products and also operates an indoor dlimbing facility for dlimbing enthusiasts. During the last part of 2022, Blossom had the following transactions related to notes payable. Sept. 1 Issued a $16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1. (Blossom uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $21,600, 9%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1. Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note. Nov. 1 Issued a $24,000 note and paid $9,000 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 8% and matures in 12 months. Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note. Dec. 1 Paid principal and interest on the Pippen note. Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note. (a) Prepare journal entries for the transactions noted above. (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 >
Blossom Corporation sells rock-dlimbing products and also operates an indoor dlimbing facility for dlimbing enthusiasts. During the last part of 2022, Blossom had the following transactions related to notes payable. Sept. 1 Issued a $16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1. (Blossom uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $21,600, 9%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1. Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note. Nov. 1 Issued a $24,000 note and paid $9,000 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 8% and matures in 12 months. Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note. Dec. 1 Paid principal and interest on the Pippen note. Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note. (a) Prepare journal entries for the transactions noted above. (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 >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Instructions for Preparing Journal Entries**
For the section labeled "(a):"
Prepare journal entries for the noted transactions. Please note the following guidance:
- **Credit Account Titles**: These are automatically indented when an amount is entered in the entry form. Manual indentation is not required.
- **Order of Recording**: Ensure that journal entries are recorded in the sequence presented in the problem statement.
**Journal Entry Template**
The template includes columns for:
1. **Date**: Record the date of each transaction.
2. **Account Titles and Explanation**: List each account affected by the transaction, along with a brief explanation if necessary.
3. **Debit**: Enter the amount to be debited.
4. **Credit**: Enter the amount to be credited.
Each row allows for separate transaction entries with additional lines to provide detailed breakdowns or explanations if needed. Use this format to systematically organize financial data for analysis and record-keeping.
Transcribed Image Text:**Blossom Corporation: Notes Payable Transactions**
Blossom Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Blossom had the following transactions related to notes payable.
- **Sept. 1**: Issued a $16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1. (Blossom uses a perpetual inventory system.)
- **Sept. 30**: Recorded accrued interest for the Pippen note.
- **Oct. 1**: Issued a $21,600, 9%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1.
- **Oct. 31**: Recorded accrued interest for the Pippen note and the Prime Bank note.
- **Nov. 1**: Issued a $24,000 note and paid $9,000 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 8% and matures in 12 months.
- **Nov. 30**: Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note.
- **Dec. 1**: Paid principal and interest on the Pippen note.
- **Dec. 31**: Recorded accrued interest for the Prime Bank note and the vehicle note.
**Journal Entries Preparation**
Prepare journal entries for the transactions noted above. (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 |
|------------|--------------------------------|-------|--------|
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
In the provided table, journal entries are to be filled in with the appropriate accounts, debits, and credits as described by the events on the specified dates. This exercise ensures accurate financial tracking of Blossom Corporation's transactions related to notes payable.
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