The following are selected 2020 transactions of Blue Corporation. Sept. 1 Purchased inventory from Encino Company on account for $ 46,400. Blue records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $ 46,400, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $ 46,400 from the Shore Bank by signing a 12-month, zero-interest-bearing $ 49,560 note. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 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.) Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) 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 $
The following are selected 2020 transactions of Blue Corporation. Sept. 1 Purchased inventory from Encino Company on account for $ 46,400. Blue records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $ 46,400, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $ 46,400 from the Shore Bank by signing a 12-month, zero-interest-bearing $ 49,560 note. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 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.) Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.) 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 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following are selected 2020 transactions of Blue Corporation.
| Sept. 1 | Purchased inventory from Encino Company on account for $ 46,400. Blue records purchases gross and uses a periodic inventory system. | |
| Oct. 1 | Issued a $ 46,400, 12-month, 8% note to Encino in payment of account. | |
| Oct. 1 | Borrowed $ 46,400 from the Shore Bank by signing a 12-month, zero-interest-bearing $ 49,560 note. |
Prepare
Prepare
Compute the total net liability to be reported on the December 31
| (1) |
The interest-bearing note
|
$ | ||
|---|---|---|---|---|
| (2) |
The zero-interest-bearing note
|
$ |
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