Blossom Corporation sells rockclimbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of Blossom had the following transactions related to notes payable.
Sept. Issued a $ note to Pippen to purchase inventory. The month note payable bears interest of and is due December Blossom uses a perpetual inventory system.
Sept. Recorded accrued interest for the Pippen note.
Oct. Issued a $month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February
Oct. Recorded accrued interest for the Pippen note and the Prime Bank note.
Nov. Issued a $ note and paid $ cash to purchase a vehicle to transport clients tc sites as part of a new series of climbing classes. This note bears interest of and matures in months.
Nov. Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note.
Dec. Paid principal and interest on the Pippen note.
Dec. Recorded accrued interest for the Prime Bank note and the vehicle note.
a
Correct Answer
Your answer is partially correct.
Prepare journal entries for the transactions noted above. List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.
Junt Titles and Explanation
Debit
Credit