(Learning Objective 3: Purchase inventory, accrue interest, and pay a short-termnote) On September 1, 2019, The Shoppes at Forest Lake, Inc., purchased inventory costing$63,000 by signing an 8%, six-month, short-term note payable. The company will pay the entirenote (principal and interest) on the note’s maturity date.Requirements1. Journalize the company’s purchase of inventory.2. Make the adjusting entry for accrual of interest on the note payable on December 31, 2019.3. At December 31, 2019, what is reported on the balance sheet related to this note payable?4. Record the payment of the note payable (principal and interest) on its maturity date

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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(Learning Objective 3: Purchase inventory, accrue interest, and pay a short-term
note) On September 1, 2019, The Shoppes at Forest Lake, Inc., purchased inventory costing
$63,000 by signing an 8%, six-month, short-term note payable. The company will pay the entire
note (principal and interest) on the note’s maturity date.
Requirements
1. Journalize the company’s purchase of inventory.
2. Make the adjusting entry for accrual of interest on the note payable on December 31, 2019.
3. At December 31, 2019, what is reported on the balance sheet related to this note payable?
4. Record the payment of the note payable (principal and interest) on its maturity date

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