The following are selected 2020 transactions of Culver Corporation.Sept.Purchased inventory from Encino Company on account for $46,800. Culver records purchases gross and uses a periodicinventory system.1Issued a $46,800, 12-month, 8% note to Encino in payment of account.Oct.1Oct.1Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in theorder displayed in the problem statement.)Datetember 1Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note.tember 1 Ver 1Account Titles and ExplanationPurchasesAccounts PayableAccounts PayableNotes PayableCashDiscount on Notes PayableNotes PayableDebit4680046800468003120Credit468004680049920 Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts.Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places, e.g.5,125.)Date Account Titles and ExplanationDecember31December31(To record interest on the note)(To record discount on the note)List of Accounts(1)Compute the total net liability to be reported on the December 31 balance sheet for:The interest-bearing note$Debit(2) The zero-interest-bearing note $Credit

Zero-interest notes are commonly utilized when the borrower has a solid credit rating and the lender…

Sept. Purchased inventory from Encino Company on account for $46,800. Culver records purchases gross and uses a periodic 1 inventory system. Issued a $46,800, 12-month, 8% note to Encino in payment of account. Oct. 1 Oct. 1 Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter O

Sept. Purchased inventory from Encino Company on account for $46,800. Culver records purchases gross and uses a periodic 1 inventory system. Issued a $46,800, 12-month, 8% note to Encino in payment of account. Oct. 1 Oct. 1 Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter O

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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Post the following November transactions to T-accounts for Accounts Payable and Inventory, indicating the ending balance (assume no beginning balances in these accounts). A.purchased merchandise inventory on account, $22,000 B.paid vendors for part of inventory purchased earlier in month, $14,000 C.purchased merchandise inventory for cash, $6,500
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