Question

C.S. Cullumber Company had the following transactions involving notes payable.

July 1, 2022		Borrows $38,000 from First National Bank by signing a 9-month, 8% note.
Nov. 1, 2022		Borrows $41,000 from Lyon County State Bank by signing a 3-month, 6% note.
Dec. 31, 2022		Prepares adjusting entries.
Feb. 1, 2023		Pays principal and interest to Lyon County State Bank.
Apr. 1, 2023		Pays principal and interest to First National Bank.

Prepare journal entries for each of the transactions. (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	Account Titles and Explanation	Debit	Credit
choose a transaction date                                                          July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023	enter an account title to record accrual of interest from First National Bank	enter a debit amount	enter a credit amount
	enter an account title to record accrual of interest from First National Bank	enter a debit amount	enter a credit amount
	(To record accrual of interest from First National Bank)
choose a transaction date                                                          July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023	enter an account title to record accrual of interest from Lyon County State Bank	enter a debit amount	enter a credit amount
	enter an account title to record accrual of interest from Lyon County State Bank	enter a debit amount	enter a credit amount
	(To record accrual of interest from Lyon County State Bank)
choose a transaction date                                                          July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          July 1, 2022November 1, 2022December 31, 2022February 1, 2023April 1, 2023	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

List of accounts to use for this are:

• Accounts Payable
• Accounts Receivable
• Accumulated Depreciation-Equipment
• Accrued Pension Liability
• Bonds Payable
• Buildings
• Cash
• Common Stock
• Cost of Goods Sold
• Current Portion of Long-Term Debt
• Depreciation Expense
• Discount on Bonds Payable
• Dividends
• Equipment
• Federal Income Taxes Payable
• Federal Unemployment Taxes Payable
• FICA Taxes Payable
• Gain on Bond Redemption
• Income Tax Expense
• Income Taxes Payable
• Insurance Expense
• Interest Expense
• Interest Payable
• Inventory
• Land
• Loss on Bond Redemption
• Mortgage Payable
• No Entry
• Notes Payable
• Other Operating Expenses
• Payroll Tax Expense
• Premium on Bonds Payable
• Prepaid Insurance
• Property Taxes Payable
• Retained Earnings
• Salaries and Wages Expense
• Salaries and Wages Payable
• Sales Revenue
• Sales Taxes Payable
• Service Revenue
• Share Premium-Conversion Equity
• State Income Taxes Payable
• State Unemployment Taxes Payable
• Subscription Revenue
• Ticket Revenue
• Unearned Rent Revenue
• Unearned Sales Revenue
• Unearned Service Revenue
• Unearned Subscription Revenue
• Unearned Ticket Revenue
• Union Dues Payable
• Warranty Liability

Answer 1

July 1 , 2022	Cash	38000
	Notes payable		38000
Nov 1 2022	Cash	41000
	Notes Payable		41000
Dec 31 2022	Interest expense	1930
	Interest payable		1930

National bank 38000 x8% x 6/12 (july to dec) 1520

Lyon 41000 x6% x2/12 (nov to dec) 410

total 1520+410 =1930

Feb 1 2023	Notes Payable	41000
	Interest payable	410
	Interest Expense	205
	Cash		41615
April 1 2023	Notes payable	38000
	Interest payable	1520
	Interest expense	760
	cash		40280

Feb 1 Interest expense lyon 41000 x 6% x 1/12 (january)=205

April 1 interest expense first national bank 38000 x 8% x 3/12 (jan feb march) =760

(interest up to 31 december 2022 has been already accounted at previous end as interest payable