Problem 11-2A (Part Level Submission)

The following are selected transactions of Blanco Company. Blanco prepares financial statements quarterly.

Jan.		2		Purchased merchandise on account from Nunez Company, $24,000, terms 3/10, n/30. (Blanco uses the perpetual inventory system.)
Feb.		1		Issued a 9%, 2-month, $24,000 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 $10,500 in cash and signing a 10%, 3-month, $54,000 note.
Sept.		30		Accrued interest for 3 months on Marson note.
Oct.		1		Paid face value and interest on Marson note.
Dec.		1		Borrowed $20,400 from the Paola Bank by issuing a 3-month, 8% note with a face value of $20,400.
Dec.		31		Recognized interest expense for 1 month on Paola Bank note.

Your answer is correct. 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 Account Titles and Explanation Debit Credit Jan. 2 Inventory 24000 Accounts Payable 24000 Feb.1 Accounts Payable 24000 Notes Payable 24000 Mar.31 Interest Expense 360 Interest Payable 3601 Apr.1 Notes Payable 24000 Interest Payable 360 Cash 24360 July 1 Equipment 64500 Cash 10500 Notes Payable 54000 Sept.30 Interest Expense 1350 Interest Payable 1350 Oct.1 Notes Payable 54000 Interest Payable 13500 Cash 55350 Dec. 1 Cash 204001 Notes Payable 20400 Dec.31 | Interest Expense 136 Interest Payable 136 (b) Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Post entries in the order of journal entries presented in the previous part.) Notes Payable V Interest Payable Interest Expense V