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 aperiodic inventory system.Sept. 1Issued 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. 1Oct. 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 enterOfor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries inthe order displayed in the problem statement.)DateAccount Titles and ExplanationDebitCrediteptember 1 vPurchases125,000Accounts Payable125,000Ictober 1Accounts Payable125,000Notes Payable125,000ober 1Cash125,000Discount on Notes Payable20,000Notes Payable145,000 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 "NoEntry" for the account titles and enter O for the amounts. Credit acount titles are automatically indented when amount is entered. Donot indent manually)DateAccount Titles and ExplanationDebitCreditDecember 31Interest Expense3750Interest Payable3750(To record interest on the note)December 31Interest Expense5000Discount on Notes Payable5000(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

Balance Sheet is the part of financial statement which shows the financial position of the Company…

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

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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