Skysong, Inc. had the following transactions involving notes payable.July 1, 2022 Borrows $52,500 from First National Bank by signing a 9-month, 8% note.Nov. 1, 2022 Borrows $63,000 from Lyon County State Bank by signing a 3-month, 6% note.Dec. 31, 2022 Prepares adjusting entries.Feb. 1, 2023 Pays principal and interest to Lyon County State Bank.Apr. 1, 2023 Pays principal and interest to First National Bank.Prepare journal entries for each of the transactions.

Interest accrued on Dec. 31, 2022 = (52500*8%*6/12)+(63000*6%*2/12) = $2100 + 630 = $2730

Answered: Skysong, Inc. had the following…

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Skysong, Inc. had the following transactions involving notes payable.

July 1, 2022		Borrows $52,500 from First National Bank by signing a 9-month, 8% note.
Nov. 1, 2022		Borrows $63,000 from Lyon County State Bank by signing a 3-month, 6% note.
Dec. 31, 2022		Prepares adjusting entries.
Feb. 1, 2023		Pays principal and interest to Lyon County State Bank.
Apr. 1, 2023		Pays principal and interest to First National Bank.

Prepare journal entries for each of the transactions.

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