Question

Please help fill in anything missing and in red.

Oriole Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2022, Oriole had the following transactions related to notes payable. Issueda $15,600 note to Pippen to purchase inventory. The 3-month note payable bears interest of 9% and is due December 1. (Oriole uses a perpetual inventory Sept. 1 system.) Sept. 30 Recorded accrued interest for the Pippen note. Issueda $18,000, 9%, 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. 1 Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note. Issued a $26,400 note and paid $8,000 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note Nov. 1 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. Paid principal and interest on the Pippen note. Dec. 1 Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note.

Answer 1

Date	Account titles and explanation	Debit	Credit
Sep-01	Inventory	$ 15,600
	Note payable		$ 15,600
	( to record purchase of inventory by issue of note )
Sep-30	Interest expense	$ 117
	Interest payable ($15,600*9%*1/12)		$ 117
	( to record interest on pippen note for 1 month)
Oct-01	Equipment	$ 18,000
	Note payable		$ 18,000
	(to record purchase of new climbing wall by issue of note )
Oct-31	Interest expense	$ 252
	Interest payable		$ 252
	{ $ 117+($ 18,000*9%*1/12)}
	( to record accrued interest for pippen note and prime bank note )
Nov-01	Equipment ($8,000+$26,400)	$ 34,400
	Cash		$ 8,000
	Notes payable		$ 26,400
	(to record purchase of vehicle wall by issue of note and cash paid $ 8000 )
Nov-30	Interest expense	$ 384
	Interest payable		$ 384
	{($ 252 + ($26,400*6%*1/12)}
	( to record accrued interest for Pippen note, prime bank note and vehicle note for $ 26,400 )
Dec-01	Notes payable	$ 15,600
	Interest payable ($15,600*9%*3/12 )	$ 351
	Cash ($ 15,600+$ 351 )		$ 15,951
	( to record principal and interest on the pippen note )
Dec-31	Interest expense	$ 267
	Interest payable		$ 267
	{($ 18,000*9%*1/12)+ ($26,400*6%*1/12)}
	( to record accrued interest for prime bank note and vehicle note for $ 26,400 )

Notes payable
Dec-01	$ 15,600	Sep-01	$ 15,600
		Oct-01	$ 18,000
		Nov-01	$ 26,400
		DEC 31 Bal	$ 44,400
Interest expense
Sep-30	$ 117
Oct-31	$ 252
Nov-30	$ 384
Dec-31	$ 267
DEC 31 Bal	$ 1,020
Interest payable
Dec-01	$ 351	Sep-30	$ 117
		Oct-31	$ 252
		Nov-30	$ 384
		Dec-31	$ 267
		DEC 31 Bal	$ 669

ORIOLE CORPORATION
Balance sheet ( Partial )
December 31,2022
Current liabilities :
Notes payable ( $ 18,000+$26,400)	$ 44,400
Interest payable (117+252+384+267-351)	$ 669
Interest expense incurred during the year :
interest expense incurred = $ 1,020
{$117+$252+$384+$267}