The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly. Jan. Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.) 2 Feb. Issued a 9%, 2-month, $30,000 note to Nunez in payment of account. Mar. 31 Accrued interest for 2 months on Nunez note. Apr. 1 Paid face value and interest on Nunez note. July Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $60,000 note. Sept. 30 Accrued interest for 3 months on Marson note. Oct. 1. Paid face value and interest on Marson note. Dec. 1. Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with face value of $24,000. Dec. 31 Recognized interest expense for 1 month on Paola Bank note.

The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly. Jan. Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.) 2 Feb. Issued a 9%, 2-month, $30,000 note to Nunez in payment of account. Mar. 31 Accrued interest for 2 months on Nunez note. Apr. 1 Paid face value and interest on Nunez note. July Purchased equipment from Marson Equipment paying $11,000 in cash and signing a 10%, 3-month, $60,000 note. Sept. 30 Accrued interest for 3 months on Marson note. Oct. 1. Paid face value and interest on Marson note. Dec. 1. Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note with face value of $24,000. Dec. 31 Recognized interest expense for 1 month on Paola Bank note.

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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