Problem 9-1: Glencoe Inc. operates with a June 30 year-end. During 2016, the following transactions occurred: January 1: Signed a one year, 10% loan for $25,000. Interest and principal are to be paid...

Problem 9-1:
Glencoe Inc. operates with a June 30 year-end. During 2016, the following transactions occurred:

1. January 1: Signed a one year, 10% loan for $25,000. Interest and principal are to be paid at maturity.


2. 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.


3. 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.


4. March 1: Borrowed $150,000 on the line of credit.


5. June 1: Repaid $100,000 on the line of credit plus accrued interest.


6. June 30: Made all necessary adjusting entries.


7. August 1: Repaid the non-interest-bearing note.


8. September 1: Borrowed $200,000 on the line of credit.


9. November 1: Insured a 3 month, 8%, $12,000 note in payment of an overdue open account.


10. December 31: Repaid the one-year loan [from transaction (a)] plus accrued interest.

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?