Question

SHOW LIST OF ACCOUNTS LINK TO TEXT 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 c Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT O Type here to search

Answer 1

Journal Entries
Date	Account Title and explanation	Debit	Credit
Sept, 01	Inventory	$                  58,600
	To Account Payable		$                     58,600
Oct , 01	Account Payable	$                  58,600
	To Notes Payable		$                     58,600
Oct , 01	Cash	$                  58,600
	Discount on Notes Payable	$                     5,120
	To Notes Payable		$                     63,720
Dec ,31	Interest Expenses (58,600 X 8% X3/12 month)	$                     1,172
	To Interest Payable		$                       1,172
Dec ,31	Interest Expenses (5,120 X3/12 month)	$                     1,280
	To Discount on notes Payable		$                       1,280