The following are selected 2020 transactions of Teal Corporation. Purchased inventory from Ripken Company on account for $125,000, Teal records purchases gross and uses a periodic inventory system. Issued a $125,000, 12-month, 12% note to Ripken in payment of account. Borrowed $125,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $145,000 note. Sept. 1 Oct. 1 Oct. 1 (a) Your answer has been saved. See score details after the due date. Prepare journal entries for the selected transactions above. (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. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit eptember 1 Purchases 125,000 Accounts Payable 125,000 ctober 1 Accounts Payable 125,000 Notes Payable 125,000 ober 1 Cash 125,000 Discount on Notes Payable 20,000 Notes Payable 145,000
The following are selected 2020 transactions of Teal Corporation. Purchased inventory from Ripken Company on account for $125,000, Teal records purchases gross and uses a periodic inventory system. Issued a $125,000, 12-month, 12% note to Ripken in payment of account. Borrowed $125,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $145,000 note. Sept. 1 Oct. 1 Oct. 1 (a) Your answer has been saved. See score details after the due date. Prepare journal entries for the selected transactions above. (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. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit eptember 1 Purchases 125,000 Accounts Payable 125,000 ctober 1 Accounts Payable 125,000 Notes Payable 125,000 ober 1 Cash 125,000 Discount on Notes Payable 20,000 Notes Payable 145,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:The following are selected 2020 transactions of Teal Corporation.
Purchased inventory from Ripken Company on account for $125,000. Teal records purchases gross and uses a
periodic inventory system.
Sept. 1
Issued a $125,000, 12-month, 12% note to Ripken in payment of account.
Borrowed $125,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $145,000 note.
Oct. 1
Oct. 1
(a)
Your answer has been saved. See score details after the due date.
Prepare 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
the order displayed in the problem statement.)
Date
Account Titles and Explanation
Debit
Credit
eptember 1 v
Purchases
125,000
Accounts Payable
125,000
Ictober 1
Accounts Payable
125,000
Notes Payable
125,000
ober 1
Cash
125,000
Discount on Notes Payable
20,000
Notes Payable
145,000

Transcribed Image Text:Your answer has been saved. See score details after the due date.
Prepare adjusting entries at December 31. Use straight-line amortization for the discount. (If no entry is required, select "No
Entry" for the account titles and enter O for the amounts. Credit acount titles are automatically indented when amount is entered. Do
not indent manually)
Date
Account Titles and Explanation
Debit
Credit
December 31
Interest Expense
3750
Interest Payable
3750
(To record interest on the note)
December 31
Interest Expense
5000
Discount on Notes Payable
5000
(To amortize discount on the note)
Attempts: 1 of 1 used
(c)
Compute the total net liability to be reported on the December 31 balance sheet for:
(1)
The interest-bearing note
(2)
The zero-interest-bearing note
%24
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