At January 1 2021 Han Merchants Had A Balance In The Interest Payable Account For Several Notes It Had Signed And Give 1 (41.99 KiB) Viewed 48 times
At January 1 2021 Han Merchants Had A Balance In The Interest Payable Account For Several Notes It Had Signed And Give 2 (27.11 KiB) Viewed 48 times
At January 1, 2021. Han Merchants had a balance in the Interest Payable account for several notes it had signed and given to suppliers in exchange for outstanding accounts payable. The following table contains the details of the notes payable and the balance of the interest accrued on each note as at the end of the last fiscal year, December 31, 2020. Note Principal Interest Rate Interest Accrued Supplier Issue Date Term 1 Tessier Inc. $5,100 8% Nov. 1, 2020 3 months $68.00 Wolde Inc. 6.900 Nov. 30, 2020 5 months 25.88 4,5% 9% 3 9,600 Dec. 1.2020 Deng Inc. 1 year 72.00 Total $165.88 All notes require that the interest be paid at the maturity of the note. All notes and interest were paid on time. Han prepares adjusting entries at the end of its calendar fiscal year Additional transactions of 2021: Mar. 1 Signed a $11.100, one-year 8% note to Lalonde Ltd. in settlement of an accounts payable. Interest is due at maturity Signed a $4.200, three-month, 4.5% note to Hanover Ltd. in settlement of an accounts payable, Interest is due at maturity. Oct 30 Nov. 30 Borrowed from RBC $10.800 cash in exchange for a two-year 9% note with interest due at maturity 2
(a) Prepare all journal entries for Han Merchants for the above transactions and to record the on-time repayment of the notes payable that were outstanding as at December 31, 2020. (Round answers to 2 decimal places, e.g. 52.76. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem) Date Account Titles and Explanation Debit Credit 2021 4 Feb. 1 >
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