ACC 205 WEEK 4 EXERCISE ASSIGNMENT LIABILITY(NEW)/Uoptutorial

Issued a $40,000 note to Harris Motors for the purchase of a $40,000 de¬livery truck.
The note is due in 180 days and carries a 12% interest rate.
9/10:
Purchased merchandise from Pans Enterprises in the amount of $15,000. Issued a 30-day,
12% note in settlement of the balance owed.
9/11:
Issued a $60,000 note to Datatex Equipment in settlement of an overdue account payable
of the same amount. The note is due in 30 days and car¬ries a 14% interest rate.
10/10:
The note to Pans Enterprises was paid in full.
10/31: The note to Datatex Equipment was paid in full.
11/30: Paid note to Bank of Kingville
Instructions
a. Prepare journal entries to record the transactions.
b. Prepare adjusting entries on October 31 to record accrued interest.
c. Prepare the Current Liability section of Red Bank’s balance sheet as of October 31.
Assume that the Accounts Payable account totals $203,600 on this date.