FIN
ACCT 557 P11-2A The following are selected
transactions of Winsky Company.
Apr. 1 Paid face value and interest on Yokum note.
July 1 Purchased equipment from Korsak Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note.
Sept. 30 Accrued interest for 3 months on Korsak note.
Oct. 1 Paid face value and interest on Korsak note.
Dec. 1 Borrowed $15,000 from the Otago Bank by issuing a 3-month, 8% interest-bearing note with a face value of $15,000.
Dec. 31 Recognized interest expense for 1 month on Otago Bank note.
FIN ACCT
557 P11-2A Winsky Company
Accounting
Principles; Financial Accounting 5th Edition: Weygandt, Kieso, and Kimmel, Axia
College of University of Phoenix (UoP)
Problem
11-2A The following are selected
transactions of Winsky Company. Winsky prepares financial
statements quarterly.
Jan. 2 Purchased merchandise on account from
Yokum Company, $30,000, terms 2/10, n/30. Feb. 1 Issued a 9%, 2-month, $30,000
note to Yokum in payment of account.
Mar. 31 Accrued interest for 2 months on
Yokum note. Apr. 1 Paid face value and interest on Yokum note.
July 1 Purchased equipment from Korsak Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note.
Sept. 30 Accrued interest for 3 months on Korsak note.
Oct. 1 Paid face value and interest on Korsak note.
Dec. 1 Borrowed $15,000 from the Otago Bank by issuing a 3-month, 8% interest-bearing note with a face value of $15,000.
Dec. 31 Recognized interest expense for 1 month on Otago Bank note.
a) Prepare journal entries for the above
transactions and events.
b) Post to the accounts Notes Pay, Interest
Pay, and Interest Exp.
Show the balance sheet presentation of notes payable at December
31. What is total interest expense for the year?
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