**Chapter Ten - Part 2**### Journal Entries for Accounts and Notes Payable**Logan Company** had the following transactions:| Date | Description ||----------|------------------------------------------------------------------------------------------------------|| Apr. 8 | Issued a $5,800, 75-day, 8% note payable in payment of an account with Bennett Company. || May 15 | Borrowed $37,000, 60-day, 9% note from Lincoln Bank. || Jun. 22 | Paid Bennett Company the principal and interest due on the April 8 note payable. || Jul. 6 | Purchased $13,000 of merchandise from Bolton Company; signed a note for 90-day, 10% interest. || Jul. 14 | Paid the May 15 note due Lincoln Bank. || Oct. 2 | Borrowed $25,000, 120-day, 12% note from Lincoln Bank. || Oct. 4 | Defaulted on the note payable to Bolton Company. |**Required**a. Record these transactions in general journal form.b. Record any adjusting entries for interest in general journal form. Logan Company has a December 31 year-end.*Round answers to nearest dollar. Use 360 days for interest calculations.*#### a.**General Journal**| Date | Description | Debit | Credit ||----------|------------------------------------------------------------------------|--------|--------|| Apr. 8 | | | || | Issued a 75-day, 8% note payable in payment of an account payable. | | || May 15 | | | || | Borrowed from bank for 60 days at 9%. | | || Jun. 22 | | | || | Interest Expense | | || | Paid note payable to Bennett Company. | | |This section features a general journal table where students are expected to fill in the transactions and corresponding financial data in the general journal format, ensuring correct debits and credits are made according to the events listed above. **Chapter Ten - Part 2****a. Transactions Table**- **Apr. 8** Issued a 75-day, 8% note payable in payment of an account payable.- **May 15** Borrowed from bank for 60 days at 9%.- **Jun. 22** Interest Expense Paid note payable to Bennett Company.- **Jul. 6** Purchased merchandise and issued a note payable with interest at 10% for 90 days.- **Jul. 14** Interest Expense Paid note payable to Lincoln Bank.- **Oct. 2** Borrowed from bank for 120 days at 12%.- **Oct. 4** Interest Expense Defaulted on note payable.**b. General Journal**- **Dec. 31** **Description:** To record interest on the October 2 note payable to Lincoln Bank. **Debit:** [Amount Not Provided] **Credit:** [Amount Not Provided]

Notes payable refers to a written agreement between two parties where the borrower agrees to repay the sum within a specified period along with interest. The tenure period of notes payable is generally within the period of 12 months.Requirement 1:Journal entries during the year are made as follows:Resultant values:Requirement 2:Adjustment entry for the interest payable is made as follows:Resultant values:The interest on the notes payable is to be added at the time of making payment. Thus, the principal amount of notes payable will be increased by the interest expense with respect to their respective maturity period and interest rate.

Business

Accounting

Journal Entries for Accounts and Notes Payable Logan Company had the following transactions: Apr. 8 Issued a $5,800, 75-day, 8% note payable in payment of an account with Bennett Company. May 15 Borrowed $37,000, 60-day, 9% note from Lincoln Bank. Jun. 22 Paid Bennett Company the principal and interest due on the April 8 note payable. Jul. 6 Purchased $13,000 of merchandise from Bolton Company; signed a note for 90-day, 10% interest. Jul. 14 Paid the May 15 note due Lincoln Bank. Oct. 2 Borrowed $25,000, 120-day, 12% note from Lincoln Bank. Oct. 4 Defaulted on the note payable to Bolton Company. Required a. Record these transactions in general journal form. b. Record any adjusting entries for interest in general journal form. Logan Company has a December 31 year-end. Round answers to nearest dollar. Use 360 days for interest calculations.

Journal Entries for Accounts and Notes Payable Logan Company had the following transactions: Apr. 8 Issued a $5,800, 75-day, 8% note payable in payment of an account with Bennett Company. May 15 Borrowed $37,000, 60-day, 9% note from Lincoln Bank. Jun. 22 Paid Bennett Company the principal and interest due on the April 8 note payable. Jul. 6 Purchased $13,000 of merchandise from Bolton Company; signed a note for 90-day, 10% interest. Jul. 14 Paid the May 15 note due Lincoln Bank. Oct. 2 Borrowed $25,000, 120-day, 12% note from Lincoln Bank. Oct. 4 Defaulted on the note payable to Bolton Company. Required a. Record these transactions in general journal form. b. Record any adjusting entries for interest in general journal form. Logan Company has a December 31 year-end. Round answers to nearest dollar. Use 360 days for interest calculations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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