Question

Problem 10-2A Bramble Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Bramble had the following transactions related to notes payable. Sept. Issued a $14,400 note to Pippen to purchase inventory. The 3-month note payable bears 1 Interest of 6% and is due December 1. (Bramble uses a perpetual Inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $20,400, 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. Recorded accrued interest for the Pippen note and the Prime Bank note. Nov. 1 Issued a $25,200 note and paid $8,500 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 8% and matures in 12 months. Nov. Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note 30 Dec. 1 Paid principal and interest on the Pippen note. Recorded accrued interest for the Prime Bank note and the vehicle note.

Answer 1

Answer → prepare Journal entries for the transactions moted above Account titles and Explanation Debit Credit Date Septi. $ 14400 $14400 Inventory ac Notes bayable and (To record the note issued for purchasing Inventory) $72 Sebt 30. $72 Interest Expense alc Interest bayable ale (To record Interest accrued on pippen note) octl. $20400 | Equipment al Notes payable ale (To record Notes issued to Finance to purchase new clie $20400 wall $208 Oct 31. $208 Interest Expenseal Interest bayable alc (To record Accrued Interest on notes payable) Equitment alc Note bayable aic cash ale (To record New Equipment purchased by issuing Note and Nov 1. $33700 $25200 $8500 Cash a nd Nov.30 $376 Interest Expense ale Interest payable are (To record Accrued Interest) $376

Answer → prepare Journal entries for the transactions moted above Account titles and Explanation Debit Credit Date Septi. $ 14400 $14400 Inventory ac Notes bayable and (To record the note issued for purchasing Inventory) $72 Sebt 30. $72 Interest Expense alc Interest bayable ale (To record Interest accrued on pippen note) octl. $20400 | Equipment al Notes payable ale (To record Notes issued to Finance to purchase new clie $20400 wall $208 Oct 31. $208 Interest Expenseal Interest bayable alc (To record Accrued Interest on notes payable) Equitment alc Note bayable aic cash ale (To record New Equipment purchased by issuing Note and Nov 1. $33700 $25200 $8500 Cash a nd Nov.30 $376 Interest Expense ale Interest payable are (To record Accrued Interest) $376

Amount($) $960 aic Interest Expense of particulars Amount ($) Particulars 1930 Interest bayable and $72 12/31 profit and loss 10/31 Interest payable are $208 11/30 Interest payable aic $376 12/31 Interest payable aic $304 $960 $960 particulars [12/1 Cash alc Interest bayable alc Amount($) Particulars Amount ($) $216 9/30 Interest Expense aid $72 10/31 Interest Expense and $208 $744 1/30 Interest Expense ale $376 12/31 Interest Expense all $304 $960 1$960 R131 Balance cld

- Show the balance sheet bresentation of notes payable and interest payable at December 31, 2017 BRAMBLE CORPORATION Balance sheet (partial) as on December 31, 2017 Current liabilities o Notes payable Interest payable $ 45600 $ 744 → How much interest Expense relating to Notes bayable did Bramble incur during the year? Interest Expense incurred during the year $960