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C.S. Blossom Company had the following transactions involving notes payable. July 1, 2025 Borrows $31,950 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2025 Dec. 31, 2025 Borrows $35,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares adjusting entries. Feb. 1, 2026 Apr. 1, 2026 Pays principal and interest to Lyon County State Bank. Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1, 2025 Cash Notes Payable November 1, 2025 Cash Notes Payable December 31, 2025 Interest Expense Interest Payable (To record accrual of interest from First National Bank) December 31, 2025 Interest Expense Interest Payable (To record accrual of interest from Lyon County State Bank) February 1, 2026 Notes Payable Interest Payable Interest Expense Cash April 1, 2026 Notes Payable Interest Payable Interest Expense Cash Debit 31950 35000 1278 350 35000 350 175 31950 Credit 31950 35000 1278 350 35525

C.S. Blossom Company had the following transactions involving notes payable. July 1, 2025 Borrows $31,950 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2025 Dec. 31, 2025 Borrows $35,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares adjusting entries. Feb. 1, 2026 Apr. 1, 2026 Pays principal and interest to Lyon County State Bank. Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1, 2025 Cash Notes Payable November 1, 2025 Cash Notes Payable December 31, 2025 Interest Expense Interest Payable (To record accrual of interest from First National Bank) December 31, 2025 Interest Expense Interest Payable (To record accrual of interest from Lyon County State Bank) February 1, 2026 Notes Payable Interest Payable Interest Expense Cash April 1, 2026 Notes Payable Interest Payable Interest Expense Cash Debit 31950 35000 1278 350 35000 350 175 31950 Credit 31950 35000 1278 350 35525

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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C.S. Blossom Company had the following transactions involving notes payable. July 1, 2025 Borrows $31,950 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2025 Dec. 31, 2025 Borrows $35,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares adjusting entries. Feb. 1, 2026 Apr. 1, 2026 Pays principal and interest to Lyon County State Bank. Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1, 2025 Cash Notes Payable November 1, 2025 Cash Notes Payable December 31, 2025 Interest Expense Interest Payable (To record accrual of interest from First National Bank) December 31, 2025 Interest Expense Interest Payable (To record accrual of interest from Lyon County State Bank) February 1, 2026 Notes Payable Interest Payable Interest Expense Cash April 1, 2026 Notes Payable Interest Payable Interest Expense Cash Debit 31950 35000 1278 350 35000 350 175 31950 Credit 31950 35000 1278 350 35525
Transcribed Image Text:C.S. Blossom Company had the following transactions involving notes payable. July 1, 2025 Borrows $31,950 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2025 Dec. 31, 2025 Borrows $35,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares adjusting entries. Feb. 1, 2026 Apr. 1, 2026 Pays principal and interest to Lyon County State Bank. Pays principal and interest to First National Bank. Prepare journal entries for each of the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1, 2025 Cash Notes Payable November 1, 2025 Cash Notes Payable December 31, 2025 Interest Expense Interest Payable (To record accrual of interest from First National Bank) December 31, 2025 Interest Expense Interest Payable (To record accrual of interest from Lyon County State Bank) February 1, 2026 Notes Payable Interest Payable Interest Expense Cash April 1, 2026 Notes Payable Interest Payable Interest Expense Cash Debit 31950 35000 1278 350 35000 350 175 31950 Credit 31950 35000 1278 350 35525
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