C.S. Cullumber Company had the following transactions involving notes payable. July 1, 2022 Borrows $74,000 from First National Bank by signing a 9-month, 8% note. Nov. 1, 2022 Borrows $77,000 from Lyon County State Bank by signing a 3-month, 6% note. Dec. 31, 2022 Prepares adjusting entries. Feb. 1, 2023 Pays principal and interest to Lyon County State Bank. Apr. 1, 2023 Pays principal and interest to First National Bank.

Respuesta :

The following journal entries will be passed in the books of accounts:

Explanation:

date  account and explanation  Debit  Credit

July 1  Cash                               74000  

Notes payable-First national bank   74000    

Nov 1  Cash                                  77000  

Notes payable-Lyon country state bank   77000    

Dec 31  Interest expense                 2960  

Interest payable                                           2960

(to record accrued interest)        

Interest expense                             770  

Interest payable                                            770

(To record accrued interest)        

Feb 1  Notes payable-Lyon country state bank  77000  

Interest payable                                                      770  

Interest expense                                                   385  

Cash                                                                          78155

(To record amount paid)        

Apr 1  Notes payable-First national bank  74000  

Interest payable                                           2960  

Interest expense                                           1480  

Cash                                                                     78440

(To record amount paid)  

The Journal entries are the accounting entries that are made in the books of accounts in order to maintain the cash and credit transactions. These transactions are recorded in the form of debit and credit that means the incoming cash is debited and the outgoing cash is credited.

The Journal entries have been attached below.

To know more about the Journal entries of the various transactions, refer to the link below:

https://brainly.com/question/16162014

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