Question

Problem 10-05A a-d (Part Level Submission) Culver Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2020, Culver had the following transactions related to notes payable. Sept. 1 Issued a $15,600 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Culver uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note. Oct. 1 Issued a $19,200, 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 $24,000 note and paid 59,200 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. 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.

Answer 1

Page ① Date:_ _Page No.:_ Date Jounal Debit Credit Sept 1 $ 15600 $15600 Purchase To 9% note payable To record purchase of inventory from Pippen against note) $117 $117 Sept 30 Interest - To Interest Payable $15600 x 9 x L 100 i2 (To record accrued interest for the Pippen nok) Oct 1 $19200 $19200 Climbing wall - To 10% nok payable (To record purchase of new climbing wall against a. note to prime bonk) $117 $160 $117 1 Out 31 Interest (Pippen note) Interest (Prime Bonk note) - To Interest Payable (Pippen note) - To Interest Payabl ( Prime Beak note) (19200 x 10%81) . ( To record accrued interest) e $160

Page ① Date: _11_Page No. Date Credit OR - Journal 2 Interest ($117+ $160) To Interest (To record alenud interest) Debit $277 Out 31 $ 277 NOV 1 Vehicle $ 33200 To cash To 87 not payable (To reord purchase of vehicle against cash and not payable) 22 $9200 $ 24000 T Nov 30 Interest $437 ($117+$160 + $160) To Interest Payable - $437 To reord acceed interest ( Interest on vehich note: 24000 x 87 x 1 = $160) Interest Payable (11783) $ 351 9% Note Payable $15600 To cash (To record payment of Pippen nok) $15951 - $320 $320 Dec 3 - Interest To rewrd (160+160) Interest Payable accrued interest)