The following are selected 2022 transactions of Larkspur Corporation. Sept. 1 Oct. 1 Oct. 1 Purchased inventory from Orion Company on account for $64,000, Larkspur records purchases gross and uses a periodic inventory system. Issued a $64,000, 12-month, 8% note to Orion in payment of account. Borrowed $96,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $103,680 note.
The following are selected 2022 transactions of Larkspur Corporation. Sept. 1 Oct. 1 Oct. 1 Purchased inventory from Orion Company on account for $64,000, Larkspur records purchases gross and uses a periodic inventory system. Issued a $64,000, 12-month, 8% note to Orion in payment of account. Borrowed $96,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $103,680 note.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following are selected 2022 transactions of Larkspur Corporation.
Sept. 1
Oct. 1
Oct. 1
Purchased inventory from Orion Company on account for $64,000, Larkspur records purchases gross and uses a
periodic inventory system.
Issued a $64,000, 12-month, 8% note to Orion in payment of account.
Borrowed $96,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $103,680 note.
Transcribed Image Text: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.)
Date Account Titles and Explanation
December
31
December
31
(To record interest on the note)
(To record discount on the note)
Debit
Credit
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