C.S. Lewis Company had the following transactions involving notes payable. July 1, 2015 Borrows $53,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2015 Borrows $64,800 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2015 Prepares adjusting entries. Feb. 1, 2016 Pays principal and interest to Lyon County State Bank. Apr. 1, 2016 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.)
C.S. Lewis Company had the following transactions involving notes payable. July 1, 2015 Borrows $53,500 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2015 Borrows $64,800 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2015 Prepares adjusting entries. Feb. 1, 2016 Pays principal and interest to Lyon County State Bank. Apr. 1, 2016 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
C.S. Lewis Company had the following transactions involving notes payable.
| July 1, 2015 | Borrows $53,500 from First National Bank by signing a 9-month, 8% note. | |
| Nov. 1, 2015 | Borrows $64,800 from Lyon County State Bank by signing a 3-month, 6% note. | |
| Dec. 31, 2015 | Prepares |
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| Feb. 1, 2016 | Pays principal and interest to Lyon County State Bank. | |
| Apr. 1, 2016 | Pays principal and interest to First National Bank. |
Prepare
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Account Titles and Explanation
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| July 1, 2015 |
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| Nov. 1, 2015 |
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| Dec. 31, 2015 |
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(Adjusting entry for First National Bank note.)
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| Dec. 31, 2015 |
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(Adjusting entry for Lyon County State Bank note.)
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| Feb. 1, 2016 |
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| Apr. 1, 2016 |
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