Question

Sarasota Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Sarasota had the following transactions related to notes payable.

Sept. 1       Issued a $16,800 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Sarasota uses a perpetual inventory system.)
Sept. 30       Recorded accrued interest for the Pippen note.
Oct. 1       Issued a $22,800, 10%, 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 $27,600 note and paid $8,100 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 6% 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 date
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
choose a transaction date
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Dec. 1
enter an account title for the journal entry on December 1
enter a debit amount
enter a credit amount
enter an account title for the journal entry on December 1
enter a debit amount
enter a credit amount
enter an account title for the journal entry on December 1
enter a debit amount
enter a credit amount
choose a transaction date
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount

  
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 date
enter a debit amount
choose a transaction date
enter a credit amount
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose the end date of the accounting period
enter a debit balance
choose the end date of the accounting period
enter a credit balance
Interest Expense
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose the end date of the accounting period
enter a debit balance
choose the end date of the accounting period
enter a credit balance
Interest Payable
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose a transaction date
enter a debit amount
choose a transaction date
enter a credit amount
choose the end date of the accounting period
enter a debit balance
choose the end date of the accounting period
enter a credit balance

Answer 1

Formula sheet

A	B	C	D	E	F	G	H
2
3		Journal entries will be as follows:
4
5		Date	Accounts	Debit	Credit
6		43344	Inventory	16800
7			Notes Payable		=E6
8
9		43373	Interest Expense	=E6*9%*(1/12)
10			Interest Payable		=E9
11			(Accrued interest for Pippen Note)
12
13		43374	Climbing Wall	22800
14			Notes Payable		=E13
15
16		43404	Interest Expense	=$E$13*10%*(1/12)
17			Interest Payable		=E16
18			(Accrued interest for Prime Bank Note)
19
20			Interest Expense	=$E$6*9%*(1/12)
21			Interest Payable		=E20
22			(Accrued interest for Pippen Note)
23
24		43405	Vehicle	=F25+F26
25			Cash		8100
26			Notes Payable		27600
27
28		43434	Interest Expense	=$E$24*6%*(1/12)
29			Interest Payable		=E28
30			(Accrued interest for Vehicle Note)
31
32			Interest Expense	=$E$13*10%*(1/12)
33			Interest Payable		=E32
34			(Accrued interest for Prime Bank Note)
35
36			Interest Expense	=$E$6*9%*(1/12)
37			Interest Payable		=E36
38			(Accrued interest for Pippen Note)
39
40		43435	Notes Payable	=F7
41			Interest Payable	=F10+F21+F37
42			Cash		=E40+E41
43
44		43465	Interest Expense	=$E$24*6%*(1/12)
45			Interest Payable		=E44
46			(Accrued interest for Vehicle Note)
47
48			Interest Expense	=$E$13*10%*(1/12)
49			Interest Payable		=E48
50			(Accrued interest for Prime Bank Note)
51