Question

On December 31, 2017, Lemoyne purchased $17,000 of merchandise inventory on a one-year, 12% note payable. Lemoyne uses a perpetual inventory system. Read the requirements. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Requirement 1. Journalize the company's purchase of merchandise inventory on December 31, 2017. Accounts and Explanation Date Debit Credit 2017 Dec. 31 ? Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

Date	General Journal	Debit	Credit
Dec 31, 2017	Merchandise inventory	$   17,000
	Note payable		$   17,000
	(To record purchase of inventory by issuing 12% note)
June 30, 2018	Interest expenses ($17,000*12%*6/12)	$     1,020
	Interest payable		$     1,020
	(To record interest accrued on June 30)
Dec 31, 2018	Interest expenses ($17,000*12%*6/12)	$     1,020
	Interest payable	$     1,020
	Note payable	$   17,000
	Cash		$   19,040
	(To record payment of note)

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