During 2024, Pronghorn Co. borrowed cash from Wildhorse Company by issuing notes payable as follows: 2 June 1, 2024, issued an eight-month, 5% note for $88,800. Interest and principal are payable at maturity. 2 October 1, 2024, issued a three-month, 8% note for $33,600. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Pronghom has a November 30 fiscal year end and prepares adjusting entries on an annual basis. ✓ Your answer is correct. Prepare all necessary journal entries for Pronghorn to record the notes. (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 amounts Record journal entries in the order presented in the problem. List olf debit entries before credit entries) Account Titles and Explanation Cash Notes Payable Cash Notes Pavah's Debit 90000 33400 Credit 66600 33400
During 2024, Pronghorn Co. borrowed cash from Wildhorse Company by issuing notes payable as follows: 2 June 1, 2024, issued an eight-month, 5% note for $88,800. Interest and principal are payable at maturity. 2 October 1, 2024, issued a three-month, 8% note for $33,600. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Pronghom has a November 30 fiscal year end and prepares adjusting entries on an annual basis. ✓ Your answer is correct. Prepare all necessary journal entries for Pronghorn to record the notes. (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 amounts Record journal entries in the order presented in the problem. List olf debit entries before credit entries) Account Titles and Explanation Cash Notes Payable Cash Notes Pavah's Debit 90000 33400 Credit 66600 33400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A 29.
Subject:- accounting
Transcribed Image Text:During 2024. Pronghorn Co. borrowed cash from Wildhorse Company by issuing notes payable as follows:
2 June 1, 2024, issued an eight-month, 5% note for $88,800. Interest and principal are payable at maturity.
October 1, 2024, issued a three-month, 8% note for $33,600. Interest is payable monthly on the first day of the month.
Principal is payable at maturity.
Pronghorn has a November 30 fiscal year end and prepares adjusting entries on an annual basis.
2
(a)
✓ Your answer is correct
Prepare all necessary journal entries for Pronghorn to record the notes. (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 amounts
Record journal entries in the order presented in the problem. List oll debit entries before credit entries)
Account Titles and Explanation
Notes Payable
Date
Cash
Notes Payable
Account Titles and Explanation
(Paid interest expense on note issued Oct. 1. 2024)
(To accrue interest on note issued June 1, 2024)
(To accrue interest on note issued Oct. 1, 2024)
Prepare all necessary interest payment transactions for Pronghorn in 2024 and 2025. Prepare separate adjusting entries for each
note. (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 amounts List all debit entries before credit entries)
(Pay interest owed on note issued Oct. 1, 2024)
(Pay principal and interest on note issued Oct. 1. 2024)
Debit
(Pay principal and interest on note issued June 1, 2024)
86400
33400
Credit
Debit
68000
33400
0000 000 00 00
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