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 partially correct. 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 4/1 24,000 ||| 2/1 24,000 10/1 54,000||| 7/1 54,000 M 12/1 20400 x 12/31 Bal. 20400 Interest Payable 4/1 360||| 3/31 360 10/1 1,350||| 9/30 1,350 12/31 136 x X x 12/31 Bal. 136 Interest Expense 3/31 360 9/30 1350 12/31 136 x X 12/31 Bal. 1846 (c) Your answer is correct. Show the balance sheet presentation of notes and interest payable at December 31. Blanco Company Balance Sheet (Partial) December 31 Current Liabilities Notes Payable 20,400 Interest Payable 136 20,536 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT (d) What is total interest expense for the year? Total interest