General Journal Date Description Debit Credit 2013 Nov. 25 Equipment 43,200.00 Notes Payable 43,200.00 Purchase of loading cart with a 60-day, 10% note Dec. 31 Interest Expense 426.08 Interest Payable 426.08 To accrue interest expense 2014 Jan. 24 Notes Payable 43,200.00 Interest Expense Interest Payable 426.08 Cash To record payment for note plus interest for equipment
General Journal Date Description Debit Credit 2013 Nov. 25 Equipment 43,200.00 Notes Payable 43,200.00 Purchase of loading cart with a 60-day, 10% note Dec. 31 Interest Expense 426.08 Interest Payable 426.08 To accrue interest expense 2014 Jan. 24 Notes Payable 43,200.00 Interest Expense Interest Payable 426.08 Cash To record payment for note plus interest for equipment
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Part A: Blue Blaze Company, whose fiscal year ends December 31, complete the following transactions involving notes payable:
2013
Nov. 25 Purchased a new loading cart by issuing a 60-day 10% note for $43,200.
Dec. 31 Made the year-end
2014
Jan. 24 Paid off the loading cart note. (Round to the nearest cent.)
Transcribed Image Text:General Journal
Date
Description
Debit
Credit
2013
Nov. 25
Equipment
43,200.00
Notes Payable
43,200.00
Purchase of loading cart with a 60-day,
10% note
Dec. 31
Interest Expense
426.08
Interest Payable
426.08
To accrue interest expense
2014
Jan. 24
Notes Payable
43,200.00
Interest Expense
Interest Payable
426.08
Cash
To record payment for note plus interest
for equipment
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