Current Attempt in ProgressSunland-on Ltd. sells rock-climbing products and operates an indoor climbing facility for climbing enthusiasts. On July 1, 2021,Sunland-on received a three-month $12,000 bank loan from City Credit Union due on September 30, 2021, and bearing interest at3%. Interest is payable at maturity. The company records adjusting entries annually at its year end, December 31.During the next four months, Sunland-on incurred the following:Purchased inventory on account for $18,000 from Black Diamond, terms n/30. The company uses a perpetualinventory system.Sept.130Repaid the $12,000 bank loan payable to City Credit Union (see opening balance), as well as any interest owed.Oct.Issued a six-month, 4%, $18,000 note payable to Black Diamond in exchange for the account payable (seeSeptember 1 transaction). Interest is payable1the first of each month.Borrowed $24,000 cash from Montpelier Bank for 12 months at 3% to finance the building of a new climbing areafor advanced climbers. Interest is payable monthly on the first of each month with the principal due in 12 months.2Nov.1Paid interest on the Black Diamond note and Montpelier Bank loan.Dec.1Paid interest on the Black Diamond note and Montpelier Bank loan.Received a $242,000 loan from Atlantic Bank for 12 months at 3% to help pay for a vehicle. Interest is payablequarterly, at the end of each quarter.331Recorded accrued interest for the Black Diamond note and the Montpelier and Atlantic loans.(a)Record the above transactions. (Post entries in the order presented in the problem statement. Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Round answers to the nearestwhole dollar, e.g. 5,275.) Open Taccounts for the Interest Expense, Interest Payable, Bank Loan Payable, and Notes Payable accounts and enter anyopening balances. Post the above entries. (Round answers to the nearest whole dollar, e.g. 5,275. Post entries in the order of journalentries presented in the previous part. If the balance is zero (0), select date from drop down and enter 0 for the amounts.)Interest Expense

Sunland-on Ltd. sells rock-climbing products and operates an indoor climbing facility for climbing enthusiasts. On July 1, 2021, Sunland-on received a three-month $12,000 bank loan from City Credit Union due on September 30, 2021, and bearing interest at 3%. Interest is payable at maturity. The company records adjusting entries annually at its year end, December 31. During the next four months, Sunland-on incurred the following: Sept. Purchased inventory on account for $18,000 from Black Diamond, terms n/30. The company uses a perpetual inventory system. 1 30 Repaid the $12,000 bank loan payable to City Credit Union (see opening balance), as well as any interest owed. Oct. Issued a six-month, 4%, $18,000 note payable to Black Diamond in exchange for the account payable (see September 1 transaction). Interest is payable on the first of each month. 1 Borrowed $24,000 cash from Montpelier Bank for 12 months at 3% to finance the building of a new climbing area 2.

Sunland-on Ltd. sells rock-climbing products and operates an indoor climbing facility for climbing enthusiasts. On July 1, 2021, Sunland-on received a three-month $12,000 bank loan from City Credit Union due on September 30, 2021, and bearing interest at 3%. Interest is payable at maturity. The company records adjusting entries annually at its year end, December 31. During the next four months, Sunland-on incurred the following: Sept. Purchased inventory on account for $18,000 from Black Diamond, terms n/30. The company uses a perpetual inventory system. 1 30 Repaid the $12,000 bank loan payable to City Credit Union (see opening balance), as well as any interest owed. Oct. Issued a six-month, 4%, $18,000 note payable to Black Diamond in exchange for the account payable (see September 1 transaction). Interest is payable on the first of each month. 1 Borrowed $24,000 cash from Montpelier Bank for 12 months at 3% to finance the building of a new climbing area 2.

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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