Question

1 MESSAGE HY INSTRUKTOR FULL SCREEN Exercise 13-2 The following are selected 2017 transactions of Cane Corporation Sept. 1 Purchased inventory from Engine Company on account for $55,600. Crane records puruses gross and uses a periodic ventory system Oct. 1 Issued a $55,600, 12 months note to Encinin payment of account Oct. 1 Borrowed $55,600 from the Shore Bank by signing a 12 month zero-terest bearing $59,960 note. your answer is correct. Prepare you al entries for the selected transactions above. C automatically indented when amount is entered on e m ntry is required select "No Entry for the accounts and enter for the amounts. Cred accounts are y orders in the order e d in the protestatement.) September 1- chases Accounts Payable October 1- Accounts Payable Notes Payable Discount on Notes Payable

Answer 1

We need to provide multiple Journal Entries in three different date
first case ==
Purchased Inventory From Encino Company on account of $55,600
Crane records purchase gross and use a periodic Inventory
Date	Details		Debit($)	Credit($)
Sept 1	Purchase		55600
	Account Payable			55600
	( purchase of Inventory)
Oct 1	Account Payable		55600
	Note payable			55600
	(to account 12 months
	8%Note to Encino)
Oct 1	Cash		55600
	Discount on Note Payable		4360
	Note payable			59960
	( borrowed $55600 from the
	shore Bank by signing a 12 months
	zero Interest bearing Note $ 59960
Dec 31	Interest Expenses		1112
	Interest Payable			1112
	( calculation of Interet $ 55600*8%*3/12)
	( accounted Interest cost - 3 Months )
Dec 31	Interest Expenses		1090
	Discount on Note Payable			1090
	( calculate Interest on Discount on debt
	for 3 months
	$ 4360*3/12)
				Amnt($)
As on 31st Dec ,	Zero interest bearing Note Payable
	Note payable			59960
	Less : Discount
	Discount on Note Payable ( as above )		4360
	Less Interest Expenses on Discount on Note Payable		1090	3270
	Zero interest bearing Note Payable - Bal as on 31st Dec			56690
	interest bearing Note Payable			55600
	Add - Interest payable ( as above)			1112
	interest bearing Note Payable - Bal as on 31st Dec			56712