Requirement 4. Record the payment of the note payable (principal and interest) on its maturity date. (Record debits first, then credits. Exclude explanations from journal entries.)ss attachedthanks 4y14 On August 1, 2022, The Cove at Mill Lake, Inc., purchased inventory costing $56,000 by signing a 9%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date.Read the requirements.Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.)Journal EntryAugDecDate20221Date202231FebInventoryNote Payable, Short-termRequirement 2. Make the adjusting entry for accrual of interest on the note payable on December 31, 2022. (Record debits first, then credits. Exclude explanations from journal entries.)Journal EntryInterest ExpenseInterest PayableCurrent liabilities:Date20231AccountsNote payable, short-termInterest payableAccounteDebitAmountAccounts56000560002100Requirement 3. At December 31, 2022, what is reported on the balance sheet related to this note payable? (If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.)Balance Sheet (partial) on December 31, 2022AccountDebit2100Credit56000Requirement 4. Record the payment of the note payable (principal and interest) on its maturity date. (Record debits first, then credits. Exclude explanations from journal entries.)Journal EntryDebitCredit2100CreditRequirements1.2Journalize the company's purchase of inventory.Make the adjusting entry for accrual of interest on the note payable on December 31,2022.3.At December 31, 2022, what is reported on the balance sheet related to thisnote payable?4.Record the payment of the note payable (principal and interest) on its maturity date.PrintDone- X

The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Requirement 4. Record the payment of the note payable (principal and interest) on its maturity date. (Record debits first, then credits. Exclude explanations from journal entries.) ss attached thanks 4y1

Requirement 4. Record the payment of the note payable (principal and interest) on its maturity date. (Record debits first, then credits. Exclude explanations from journal entries.) ss attached thanks 4y1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Requirement 4. Record the payment of the note payable (principal and interest) on its maturity date. (Record debits first, then credits. Exclude explanations from journal entries.)

ss attached

thanks

4y1

On August 1, 2022, The Cove at Mill Lake, Inc., purchased inventory costing $56,000 by signing a 9%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date.
Read the requirements.
Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.)
Journal Entry
Aug
Dec
Date
2022
1
Date
2022
31
Feb
Inventory
Note Payable, Short-term
Requirement 2. Make the adjusting entry for accrual of interest on the note payable on December 31, 2022. (Record debits first, then credits. Exclude explanations from journal entries.)
Journal Entry
Interest Expense
Interest Payable
Current liabilities:
Date
2023
1
Accounts
Note payable, short-term
Interest payable
Accounte
Debit
Amount
Accounts
56000
56000
2100
Requirement 3. At December 31, 2022, what is reported on the balance sheet related to this note payable? (If an input field is not used in the table, leave the field empty; do not select a label or enter a zero.)
Balance Sheet (partial) on December 31, 2022
Account
Debit
2100
Credit
56000
Requirement 4. Record the payment of the note payable (principal and interest) on its maturity date. (Record debits first, then credits. Exclude explanations from journal entries.)
Journal Entry
Debit
Credit
2100
Credit
Requirements
1.
2
Journalize the company's purchase of inventory.
Make the adjusting entry for accrual of interest on the note payable on December 31,
2022.
3.
At December 31, 2022, 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.
Print
Done
- X

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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