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The following are selected transactions of Sunland Company. Sunland prepares financial statements quarterly. Interest on all notes is paid at maturity. Jan 2 Purchased merchandise on account from Nunez Company, $32,400, terms 3/10, n/30. (Sunland uses the perpetual inventory system) Feb. 1 Issued a 9%, 2-month, $32,400 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 1 Sept. 30 30 Purchased equipment from Marson Equipment, paying $10,200 in cash and signing a 10%, 3-month, $55,200 note. Accrued interest for 3 months on Marson note. Oct. 1 Paid face value and interest on Marson note. Dec. 1 Borrowed $30,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $30,000. Dec. 31 Recognized interest expense for 1 month on Paola Bank note.

The following are selected transactions of Sunland Company. Sunland prepares financial statements quarterly. Interest on all notes is paid at maturity. Jan 2 Purchased merchandise on account from Nunez Company, $32,400, terms 3/10, n/30. (Sunland uses the perpetual inventory system) Feb. 1 Issued a 9%, 2-month, $32,400 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 1 Sept. 30 30 Purchased equipment from Marson Equipment, paying $10,200 in cash and signing a 10%, 3-month, $55,200 note. Accrued interest for 3 months on Marson note. Oct. 1 Paid face value and interest on Marson note. Dec. 1 Borrowed $30,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $30,000. Dec. 31 Recognized interest expense for 1 month on Paola Bank note.

FINANCIAL ACCOUNTING
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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The following are selected transactions of Sunland Company. Sunland prepares financial statements quarterly. Interest on all notes is paid at maturity. Jan. 2 Purchased merchandise on account from Nunez Company, $32,400, terms 3/10, n/30. (Sunland uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $32,400 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 1 Purchased equipment from Marson Equipment, paying $10,200 in cash and signing a 10%, 3-month, $55,200 note. Sept. 30 Accrued interest for 3 months on Marson note. Oct. 1 Paid face value and interest on Marson note. Dec. 1 Dec. 31 Borrowed $30,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $30,000. Recognized interest expense for 1 month on Paola Bank note. (a) Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation > > Debit Credit
Transcribed Image Text:The following are selected transactions of Sunland Company. Sunland prepares financial statements quarterly. Interest on all notes is paid at maturity. Jan. 2 Purchased merchandise on account from Nunez Company, $32,400, terms 3/10, n/30. (Sunland uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $32,400 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 1 Purchased equipment from Marson Equipment, paying $10,200 in cash and signing a 10%, 3-month, $55,200 note. Sept. 30 Accrued interest for 3 months on Marson note. Oct. 1 Paid face value and interest on Marson note. Dec. 1 Dec. 31 Borrowed $30,000 from the Paola Bank by issuing a 3-month, 8% note with a face value of $30,000. Recognized interest expense for 1 month on Paola Bank note. (a) Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation > > Debit Credit
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