The following information pertains to Sunland Ltd. In 2024 the company entered into new borrowings using short-term notes payable. On June 30, they borrowed $10,900 that they planned to use to purchase new office equipment, the interest rate on the note was 6% with both interest and principal repayable in 6 months (December 31st). On October 1st, the company financed the purchase of a used vehicle costing $65,400 using a 12 month note payable at 8% with interest payments due quarterly and the principal amount due at maturity. The company's year end is December 31st. Record the journal entries for the issuance of both notes and any interest entries that need to be made up to and including December 31, 2024. Assume that no interest expense was accrued during the year. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Date Account Titles and Explanation (To record interest and principal repayable amount) (To record accrual of interest) Debit Credit

The following information pertains to Sunland Ltd. In 2024 the company entered into new borrowings using short-term notes payable. On June 30, they borrowed $10,900 that they planned to use to purchase new office equipment, the interest rate on the note was 6% with both interest and principal repayable in 6 months (December 31st). On October 1st, the company financed the purchase of a used vehicle costing $65,400 using a 12 month note payable at 8% with interest payments due quarterly and the principal amount due at maturity. The company's year end is December 31st. Record the journal entries for the issuance of both notes and any interest entries that need to be made up to and including December 31, 2024. Assume that no interest expense was accrued during the year. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the 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. List all debit entries before credit entries.) Date Account Titles and Explanation (To record interest and principal repayable amount) (To record accrual of interest) Debit Credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 9PB: Pickles R Us is a pickle farm located in the Northeast. The following transactions take place: A. On...

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Question

The following information pertains to Sunland Ltd. In 2024 the company entered into new borrowings using short-term notes payable.
On June 30, they borrowed $10,900 that they planned to use to purchase new office equipment, the interest rate on the note was 6%
with both interest and principal repayable in 6 months (December 31st). On October 1st, the company financed the purchase of a used
vehicle costing $65,400 using a 12 month note payable at 8% with interest payments due quarterly and the principal amount due at
maturity. The company's year end is December 31st.
Record the journal entries for the issuance of both notes and any interest entries that need to be made up to and including December
31, 2024. Assume that no interest expense was accrued during the year. (Record journal entries in the order presented in the problem.
Credit account titles are automatically indented when the 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. List all debit entries before credit entries.)
Date
Account Titles and Explanation
(To record interest and principal
repayable amount)
(To record accrual of interest)
Debit
Credit

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