The following are selected transactions of Blanco Company Bl

Jan.		2		Purchased merchandise on account from Nunez Company, $34,800, terms 3/10, n/30. (Blanco uses the perpetual inventory system.)
Feb.		1		Issued a 9%, 2-month, $34,800 note to Nunez in payment of account.
Mar.		31		Accrued interest for 2 months on Nunez note.
Apr.		1		Paid face value and interest on Nunez note.
July		1		Purchased equipment from Marson Equipment paying $11,400 in cash and signing a 10%, 3-month, $52,800 note.
Sept.		30		Accrued interest for 3 months on Marson note.
Oct.		1		Paid face value and interest on Marson note.
Dec.		1		Borrowed $21,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $21,600.
Dec.		31		Recognized interest expense for 1 month on Paola Bank note.

Pad 1:39 AM 57% Lesson 10/Chapter10 Graded Homework The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly Purchased merchandise on account from Nunez Company, $34,800, terms 3/10, n/30.(Blanco uses the perpetu inventory system.) Jan. ? Feb. 1 Issued a 9%, 2-month, $34,800 note to Nunez in payment of account. Mar. 31 Accrued interest for 2 months on Nunez note. Apr. 1 Paid face value and interest on Nunez note. July Purchased equipment from Marson Equipment paying $11,400 ?, cash and signing a 10%, 3-month, $52,800 Review Results by Study Sept.30 Accrued interest for 3 months on Marson note Oct. 1 Paid face value and interest on Marson note. Dec. 1 Borrowed $21,600 from the Paola Bank by issuing a 3-month, 8% note with a face value of $21.60 Dec. 31 Recognized interest expense for 1 month on Paola Bank note Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is entered. Do not indent manually, Record journal entries in the order presented in the problem Date Accoust Titles and Esplanation Apr, 1 Oct. 1 Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Post entries in the order of jourmal entries presented in the previous part.

Solution

Interest Expense for the year= $1,986

		Debit	Credit
Jan-02	Inventory A/c	34800
	to Accounts Payable A/c		34800
Feb-01	Accounts Payable A/c	34800
	To Notes Payable A/c		34800
Mar-31	Interest Expense A/c (34800*9%/12*2)	522
	To Interest Payable A/c		522
Apr-01	Notes Payable A/c	34800
	Interest Payable A/c	522
	To Cash A/c		35322
Jul-01	Equipment A/c	64200
	To Cash A/c		11400
	To Note payable A/c		52800
Sep-30	Interest Expense A/c (52800*10%/12*3)	1320
	To Interest Payable A/c		1320
Oct-01	Notes Payable A/c	52800
	Interest Payable A/c	1320
	To Cash A/c		54120
Dec-01	Cash a/c	21600
	To Notes Payable A/c		21600
Dec-31	Interest Expense A/c (21600*8%/12)	144
	To Interest Payable A/c		144