PLEASE COMPLETE PART (B)

(notes payable, interest payable, interest expense)

The following are selected transactions of Sheffield Company. Sheffield prepares financial statements quarterly. 2 Purchased merchandise on account from Nunez Company, $41,000, terms 3/10, 1/30. (Sheffield uses the perpetual inventory system.) Issued a 9%, 2-month, $41,000 note to Nunez in payment of account. Accrued interest for 2 months on Nunez note. Apr. Paid face value and interest on Nunez note. July Purchased equipment from Marson Equipment paying $13,000 in cash and signing a 10%, 3-month, $52,800 note. Sept. 30 Accrued interest for 3 months on Marson note. Oct. Paid face value and interest on Marson note. Dec. 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. Jan. Feb. 1 Mar. 31 1 1 1 1 Prepare journal entries for the listed transactions and events. (Credit account titles are automatically indented when amount is manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 24 Inventory 41000 Accounts Payable Accounts Payable 41000 Notes Payable 41000 41000 Feb. 1 Mar 31 Interest Expense 615 Interest Payable 615 Apr.1 Notes Payable 41000 Interest Payable 615 Cash 41615 July 1 Equipment 65800 Cash 13000 Notes Payable 52800 Sept.30 Interest Expense 1320 Interest Payable 1320 Oct.1 Notes Payable 52800 Interest Payable 1320 Cash 54120 Dec. 1 Cash 21600 Notes Payable 21600 Dec. 31 Interest Expense 144 Interest Payable 144 Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Post entrie Notes Payable 4/1 41000 2/1 41000 10/1 52800 7/1 - 52800 12/1 21600 Interest Payable 4/1 615 3/31 615 10/1 1320 9/30 1320 12/31 144 Interest Expense 3/31 615 9/30 1320 12/31 144