(Solved by Humans)-Problem 9-1 Notes and Interest Glencoe Inc. operates with a June 30 year-end. During 2014, the...

Paper Details

Problem 9-1  Notes and Interest Glencoe Inc. operates with a June 30 year-end. During 2014, the following transactions occurred: a.      January 1: Signed a one-year, 10% loan for $25,000. Interest and principal are to be paid at maturity. b.      January 10: Signed a line of credit with Little Local Bank to establish a $400,000 line of credit. Interest of 9% will be charged on all borrowed funds. c.       February 1: Issued a $20,000 non-interest-bearing, six-month note to pay for a new machine. Interest on the note, at 12%, was deducted in advance. d.      March 1: Borrowed $150,000 on the line of credit. e.       June 1: Repaid $100,000 on the line of credit plus accrued interest. f.       June 30: Made all necessary adjusting entries. g.       August 1: Repaid the non-interest-bearing note. h.      September 1: Borrowed $200,000 on the line of credit. i.        November 1: Issued a three-month, 8%, $12,000 note in payment of an overdue open account. j.        December 31: Repaid the one-year loan [from transaction (a)] plus accrued interest. Required 1.        Record all journal entries necessary to report these transactions. 2.        As of December 31, which notes are outstanding? How much interest is due on each?