Brown Company is having difficult paying off their suppliers. Fortunately, one of their suppliers has agreed to convert the amounts owing into a note payable. The note payable is issued on September 1, 2020 for an amount of $76,000, and is due 12 months from now with an interest rate of 3% per year. Brown Inc. has a December 31 year-end. Do not enter dollar signs or commas in the input boxes. Round your answers to the nearest whole dollar. For transactions with more than one debit, enter the accounts in alphabetical order. .

1. Brown Company is having difficult paying off their suppliers. Fortunately, one of their suppliers
has agreed to convert the amounts owing into a note payable. The note payable is issued on
September 1, 2020 for an amount of $76,000, and is due 12 months from now with an interest
rate of 3% per year. Brown Inc. has a December 31 year-end.
Do not enter dollar signs or commas in the input boxes.
Round your answers to the nearest whole dollar.
For transactions with more than one debit, enter the accounts in alphabetical order.
Date Account Title and Explanation Debit Credit
Sep 1
AnswerAccounts PayableAccounts ReceivableCashInterest
ExpenseInterest PayableInterest ReceivableInterest RevenueNotes
PayablePrepaid RentRent ExpenseSales RevenueUnearned
RevenueWarranty Expense
Answer
AnswerAccounts PayableAccounts ReceivableCashInterest
ExpenseInterest PayableInterest ReceivableInterest RevenueNotes
PayablePrepaid RentRent ExpenseSales RevenueUnearned
RevenueWarranty Expense
Answer
To convert accounts payable to a note
Dec
31
AnswerAccounts PayableAccounts ReceivableCashInterest
ExpenseInterest PayableInterest ReceivableInterest RevenueNotes
PayablePrepaid RentRent ExpenseSales RevenueUnearned
RevenueWarranty Expense
Answer
AnswerAccounts PayableAccounts ReceivableCashInterest
ExpenseInterest PayableInterest ReceivableInterest RevenueNotes
PayablePrepaid RentRent ExpenseSales RevenueUnearned
RevenueWarranty Expense
Answer
To record interest accrued
Aug
31
AnswerAccounts PayableAccounts ReceivableCashInterest
ExpenseInterest PayableInterest ReceivableInterest RevenueNotes
PayablePrepaid RentRent ExpenseSales RevenueUnearned
RevenueWarranty Expense
Answer
AnswerAccounts PayableAccounts ReceivableCashInterest
ExpenseInterest PayableInterest ReceivableInterest RevenueNotes
PayablePrepaid RentRent ExpenseSales RevenueUnearned
RevenueWarranty Expense
Answer
AnswerAccounts PayableAccounts ReceivableCashInterest
ExpenseInterest PayableInterest ReceivableInterest RevenueNotes
PayablePrepaid RentRent ExpenseSales RevenueUnearned
RevenueWarranty Expense
Answer
AnswerAccounts PayableAccounts ReceivableCashInterest
ExpenseInterest PayableInterest ReceivableInterest RevenueNotes
Answer

2. PayablePrepaid RentRent ExpenseSales RevenueUnearned
RevenueWarranty Expense
To record the payment of note payable