The following are selected 2025 transactions of ayayai corporation: september 1 purchased inventory from ripken company on account for $125,000. ayayai records purchases gross and uses a periodic inventory system. october 1 issued a $125,000, 12 - month, 12% note to ripken in payment of account. october 1 borrowed $125,000 from the shore bank by signing a 12 - month,zero - interest - bearing $145, 000 note. prepare adjusting entries at december 31. (use straight - line amortization of the discount.)

The following are selected 2025 transactions of ayayai corporation: september 1 purchased inventory from ripken company on account for $125,000. ayayai records purchases gross and uses a periodic inventory system. october 1 issued a $125,000, 12 - month, 12% note to ripken in payment of account. october 1 borrowed $125,000 from the shore bank by signing a 12 - month,zero - interest - bearing $145, 000 note. prepare adjusting entries at december 31. (use straight - line amortization of the discount.)

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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