NOTES PAYABLE ENTRIES Milo Radio Shop had the following note

NOTES PAYABLE ENTRIES Milo Radio Shop had the following notes payable transactions: Apr. 1 Borrowed $5,000 from Builder\'s Bank, signing a 90-day, 8% note. 5 Gave a $2,000, 60-day, 7% note to Breaker Parts Co. for purchase of merchandise Paid $500 cash and gave a $1,500, 30-day, 6% note to M. K. Reynolds in payment of an account payable. 10 May Paid $500 cash, plus interest, and issued a new $1,000, 30-day, 7% note to M. K. Reynolds. 10 682 Reader Contents Notebook Bookmarks Figures

Solution

Answer

Date	accounts & explanation		debit	credit
1 april	Cash		5000
	note payable			5000
	(Being borrowed money from bank)
5 april	Purchash		2000
	7% Note payable			2000
	(Being purchased goods on credit)
10 april	Accont payable		2000
	cash			500
	6% note payable			1500
	(Being part payment made)
10 may	6%note payable		1500
	Interest Exp.		7.5
	cash			507.50
	7% note payable			1000
	(being part payment paid)
20 may	cash		3459.17
	Discount		40.83
	note payable			3500
	(being loan taken at discount)
4 june	Interest exp.		23.33
	7%note payable			23.33
	(being interest exp. record)
	7% note payable		2023.33
	cash			523.33
	7%Acconts payable			1500
	(being part payment made)
9 june	interest exp.		5.83
	7% note payable			1000
	cash			1005.83
	(being payment made)
30 june	interest exp.		100
	note payable			100
	(being interest recorded)
	note payable		5100
	cash			5100
	(being loan repaid)
4 july	interest exp		8.75
	7%note payable			8.75
	(being interest exp record)
	7% note payable		1508.75
	cash			1508.75
	(being payment made)
9 july	note payable		3500
	cash			3500
	(being payment made of non internal bearing note)