Question

Flounder Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Flounder had the following transactions related to notes payable. Sept. 1 Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears interest of 8% and is due December 1. (Flounder uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $21,600, 8%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1. Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note. Nov. 1 Issued a $26,400 note and paid $8,900 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 7% and matures in 12 months. Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note. Dec. 1 Paid principal and interest on the Pippen note. Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note. Date Account Titles and Explanation Debit Credit choose a transaction dateEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer Dec. 1 enter an account title for the journal entry on December 1Entry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account title for the journal entry on December 1Entry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer enter an account title for the journal entry on December 1Entry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with incorrect answer enter a credit amountEntry field with correct answer enter an account titleEntry field with correct answer enter a debit amountEntry field with correct answer enter a credit amountEntry field with incorrect answer LINK TO TEXT LINK TO TEXT Partially correct answer. Your answer is partially correct. Try again. Post the above entries to the Notes Payable, Interest Payable, and Interest Expense accounts. (Post entries in the order of journal entries posted in the previous part of the question.) Notes Payable choose a transaction dateEntry field with correct answer enter a debit amountEntry field with incorrect answer choose a transaction dateEntry field with correct answer enter a credit amountEntry field with incorrect answer choose a transaction dateEntry field with correct answer enter a debit amountEntry field with correct answer choose a transaction dateEntry field with correct answer enter a credit amountEntry field with incorrect answer choose a transaction dateEntry field with correct answer enter a debit amountEntry field with correct answer choose a transaction dateEntry field with correct answer enter a credit amountEntry field with incorrect answer choose the end date of the accounting periodEntry field with correct answer enter a debit balanceEntry field with correct answer choose the end date of the accounting periodEntry field with correct answer enter a credit balanceEntry field with incorrect answer Interest Expense choose a transaction dateEntry field with incorrect answer enter a debit amountEntry field with incorrect answer choose a transaction dateEntry field with incorrect answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with incorrect answer enter a debit amountEntry field with incorrect answer choose a transaction dateEntry field with incorrect answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with incorrect answer enter a debit amountEntry field with incorrect answer choose a transaction dateEntry field with incorrect answer enter a credit amountEntry field with correct answer choose a transaction dateEntry field with incorrect answer enter a debit amountEntry field with incorrect answer choose a transaction dateEntry field with incorrect answer enter a credit amountEntry field with correct answer choose the end date of the accounting periodEntry field with incorrect answer enter a debit balanceEntry field with incorrect answer choose the end date of the accounting periodEntry field with incorrect answer enter a credit balanceEntry field with correct answer Interest Payable choose a transaction dateEntry field with incorrect answer enter a debit amountEntry field with incorrect answer choose a transaction dateEntry field with incorrect answer enter a credit amountEntry field with incorrect answer choose a transaction dateEntry field with incorrect answer enter a debit amountEntry field with correct answer choose a transaction dateEntry field with incorrect answer enter a credit amountEntry field with incorrect answer choose a transaction dateEntry field with incorrect answer enter a debit amountEntry field with correct answer choose a transaction dateEntry field with incorrect answer enter a credit amountEntry field with incorrect answer choose a transaction dateEntry field with incorrect answer enter a debit amountEntry field with correct answer choose a transaction dateEntry field with incorrect answer enter a credit amountEntry field with incorrect answer choose the end date of the accounting periodEntry field with incorrect answer enter a debit balanceEntry field with correct answer choose the end date of the accounting periodEntry field with incorrect answer enter a credit balanceEntry field with incorrect answer LINK TO TEXT LINK TO TEXT Partially correct answer. Your answer is partially correct. Try again. Show the balance sheet presentation of notes payable and interest payable at December 31. FLOUNDER CORPORATION Balance Sheet (Partial) choose the accounting periodEntry field with correct answer select an opening subsection nameEntry field with incorrect answer enter a balance sheet itemEntry field with incorrect answer $enter a dollar amountEntry field with incorrect answer enter a balance sheet itemEntry field with incorrect answer enter a dollar amountEntry field with incorrect answer LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. How much interest expense relating to notes payable did Flounder incur during the year? Interest expense incurred during the year $enter a dollar amountEntry field with incorrect answer

Answer 1

amounts have been answered up to two decimal values

DATE	ACCOUNT TITLES AND EXPLANATION	DEBIT	CREDIT
Sep-01	inventory	14400
	to notes payable		14400
	(being inventory purchased issuing a 3 month note payable)
30	interest expense	96
	to interest payable		96	(14400*8%*1/12)
	( interest accrued recorded)
Oct-01	climbing wall	21600
	to notes payable		21600
	(purchase of new climbing wall for a 4 month note payable)
31	interest expense	240
	to interest payable		240	[21600*8%*1/12]+96=144+96=240
	(interest expense accrued)
Nov-01	vehicle	26400
	to cash		8900
	to notes payable		17500
	(vehicle purchased partly by cash and partly by 12 month notes payable )
30	interest expense	342.08
	to interest payable		342.08	[(17500*7%*1/12)]+240
	(interest accrued recorded)
Dec-01	notes payable	14400
	interest payable	288		96*3
	to cash		14688
	(paid principal and interest )
31	interest expenses	246.08
	to interest payable		246.08	144+102.08
	(interest accrued recorded)

INTEREST EXPENSES
Sep-30	96	Dec-31	924.16
Oct-31	240
Nov-30	342.08
Dec-31	246.08
	924.16		924.16

INTEREST PAYABLE
Dec-01	288	Sep-30	96
31-Dec	636.16	Oct-31	240
		Nov-30	342.08
		Dec-31	246.08
	924.16		924.16

NOTES PAYABLE
Dec-01	14400	Sep-01	14400
Dec-31	39100	Oct-01	21600
		Nov-01	17500
	53500		53500

BALANCESHEET
AS ON DEC312017
CURRENT LIABILITIES
NOTES PAYABLE		39100
INTEREST PAYABLE		636.16

INTEREST EXPENSE INCURRED DURING THE YEAR

924.16

HOPE THIS WAS HELPFUL.DO CONSIDER GIVING THIS A THUMPS UP.