Date Account Titles and Explanation Debit July 1, 2025 Cash Notes Payable November 1, 2025 Cash December 31, 2025 December 31, 2025 Notes Payable Interest Expense Interest Payable (To record accrual of interest from First National Bank) Interest Expense Interest Payable (To record accrual of interest from Lyon County State Bank) February 1, 2026 Notes Payable Interest Expense Interest Payable Cash April 1, 2026 Notes Payable 37950 41000 618 41000 618 37950 Interest Expense 2277 Interest Payable Cash ПО ПОДГ JUU C.S. Cullumber Company had the following transactions involving notes payable. July 1, 2025 Nov. 1, 2025 Dec. 31, 2025 Borrows $37,950 from First National Bank by signing a 9-month, 8% note. Borrows $41,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares adjusting entries. Feb. 1, 2026 Pays principal and interest to Lyon County State Bank. Apr. 1, 2026 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 Debit July 1, 2025 Cash Notes Payable November 1, 2025 Cash December 31, 2025 December 31, 2025 Notes Payable Interest Expense Interest Payable (To record accrual of interest from First National Bank) Interest Expense Interest Payable (To record accrual of interest from Lyon County State Bank) February 1, 2026 Notes Payable Interest Expense Interest Payable Cash April 1, 2026 Notes Payable 37950 41000 618 41000 618 37950 Interest Expense 2277 Interest Payable Cash ПО ПОДГ JUU C.S. Cullumber Company had the following transactions involving notes payable. July 1, 2025 Nov. 1, 2025 Dec. 31, 2025 Borrows $37,950 from First National Bank by signing a 9-month, 8% note. Borrows $41,000 from Lyon County State Bank by signing a 3-month, 6% note. Prepares adjusting entries. Feb. 1, 2026 Pays principal and interest to Lyon County State Bank. Apr. 1, 2026 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.)
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter17: Accounting For Notes And Interest
Section: Chapter Questions
Problem 3CE
Related questions
Question
Transcribed Image Text:Date
Account Titles and Explanation
Debit
July 1, 2025
Cash
Notes Payable
November 1, 2025
Cash
December 31, 2025
December 31, 2025
Notes Payable
Interest Expense
Interest Payable
(To record accrual of interest from First National Bank)
Interest Expense
Interest Payable
(To record accrual of interest from Lyon County State
Bank)
February 1, 2026
Notes Payable
Interest Expense
Interest Payable
Cash
April 1, 2026
Notes Payable
37950
41000
618
41000
618
37950
Interest Expense
2277
Interest Payable
Cash
ПО ПОДГ
JUU
Transcribed Image Text:C.S. Cullumber Company had the following transactions involving notes payable.
July 1, 2025
Nov. 1, 2025
Dec. 31, 2025
Borrows $37,950 from First National Bank by signing a 9-month, 8% note.
Borrows $41,000 from Lyon County State Bank by signing a 3-month, 6% note.
Prepares adjusting entries.
Feb. 1, 2026
Pays principal and interest to Lyon County State Bank.
Apr. 1, 2026
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.)
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