Recording accrued interest for the pippen note

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Reference no: EM131830812

Question: Ehler Corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. During the last part of 2017, Ehler had the following transactions related to notes payable. Sept. 1 Issued a $12,000 note to Pippen to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1. (Ehler uses a perpetual inventory system.) Sept. 30 Recorded accrued interest for the Pippen note.

Oct. 1 Issued a $16,500, 8%, 4-month note to Prime Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1.

Oct. 31 Recorded accrued interest for the Pippen note and the Prime Bank note.

Nov. 1 Issued a $26,000 note and paid $8,000 cash to purchase a vehicle to transport clients to nearby climbing sites as part of a new series of climbing classes. This note bears interest of 6% and matures in 12 months.

Nov. 30 Recorded accrued interest for the Pippen note, the Prime Bank note, and the vehicle note.

Dec. 1 Paid principal and interest on the Pippen note.

Dec. 31 Recorded accrued interest for the Prime Bank note and the vehicle note.

Reference no: EM131830812

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