Ermlar corporation sells rock-climbing products and also operates an indoor climbing facility for climbing enthusiasts. during the last part of 2014, ermlar had the following transactions related to notes payable
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Sept. 1
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Issued a $12,000 note to Lippert to purchase inventory. The 3-month note payable bears interest of 6% and is due December 1. (Ermlar uses a perpetual inventory system.)
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Sept.30
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Recorded accrued interest for the Lippert note.
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Oct. 1
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Issued a $16,500, 8%, 4-month note to Shanee Bank to finance the purchase of a new climbing wall for advanced climbers. The note is due February 1.
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Oct. 31
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Recorded accrued interest for the Lippert note and the Shanee Bank note.
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Nov. 1
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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.
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Nov. 30
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Recorded accrued interest for the Lippert note, the Shanee Bank note, and the vehicle note.
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Dec. 1
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Paid principal and interest on the Lippert note.
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Dec. 31
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Recorded accrued interest for the Shanee Bank note and the vehicle note.
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1.prepare journal entries for the transactions noted above.
2.post above entries to the notes payable, interest payable, and interest expense accounts using a T-acounts
3.show the balance sheet presentation of the notes payable and interest paybale at dec.31
4.how much interest expense relating to notes payable did ermlar incur the year?