# Selected 2025 Transactions of Whispering Corporation## Transaction Details:### September 1:- **Action:** Purchased inventory from Encino Company on account.- **Amount:** $39,000.- **Notes:** Whispering records purchases gross and uses a periodic inventory system.### October 1:- **Action:** Issued a 12-month, 8% note to Encino in payment of account.- **Amount:** $39,000.### October 1:- **Action:** Borrowed money from the Shore Bank by signing a 12-month, zero-interest-bearing note.- **Amount Borrowed:** $39,000.- **Note Amount:** $42,120.## Journal Entry Preparation:- Prepare journal entries for the above transactions.- **Instructions:** - If no entry is required, select "No Entry" and enter 0 for the amounts. - Credit account titles are automatically indented when the amount is entered. - **Order of Entries:** Record in the order displayed in the problem statement. - **Formatting:** List all debit entries before credit entries.### Journal Entry Table:| Date | Account Titles and Explanation | Debit | Credit ||------------|--------------------------------|-------|--------|| | | | || | | | || | | | || | | | || | | | |This section provides a template to fill in the necessary account information and amounts corresponding to each transaction.

Under periodic inventory system, all the inventory bought are recorded in purchase account as inventory is not updated after each transaction.(a) journal entries are as follows :- Journal entries Date Account titles and explanation Debit ($) Credit ($) Sept. 1 Purchases $39,000 Accounts payable $39,000 (To record purchase of inventory) Oct. 1 Accounts payable $39,000 8%, Notes payable $39,000 (To record issue of note payable to accounts payable) Oct. 1 Cash $39,000 Discount on note payable ($42,120 - $39,000) $3,120 Notes payable $42,120 (To record issue of notes)

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The following are selected 2025 transactions of Whispering Corporation. Sept. 1 Oct. 1 Oct. 1 (a) Purchased inventory from Encino Company on account for $39,000. Whispering records purchases gross and uses a periodic inventory system. Issued a $39,000, 12-month, 8% note to Encino in payment of account. Borrowed $39,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $42,120 note. 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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit

The following are selected 2025 transactions of Whispering Corporation. Sept. 1 Oct. 1 Oct. 1 (a) Purchased inventory from Encino Company on account for $39,000. Whispering records purchases gross and uses a periodic inventory system. Issued a $39,000, 12-month, 8% note to Encino in payment of account. Borrowed $39,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $42,120 note. 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. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit

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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am. 186.
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