Question

ASSIGNMENT RESOURCES Exercise 13-2 The following are selected 2017 transactions of Larkspur Corporation. Copy of CPT 13 HW Sept. 1 Purchased inventory from t Company on account for $58,600. Larkspur records purchases gross and uses a penedic nventory system. Oct. 1 Issued a $58,600, 12-month, 89% note to Encino in payment of account. Oct. 1 Borrowed $58,600 from the Shore Bank by signing a 12-manth, zero-interest-bearing $63,720 note. Exercise 13-8 Exercise 13-19 Problem 13-14 Prepare journal entries for the selected transactions above. (If ng entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit titles are automatically indented when amount is entered. o not indent manually. Record entries in the order displayed in the problem statement.) Account Titles and Explanation Debit Credit Date Review Results by Study Obiective 58,600 September 1 Cash Notes Payable 58,600 5,120 October 1Interest Expense 5,120 Interest Payable October 1 Cash 58,120 5,120 Discount on Notes Payable 63,720 Notes Payable SHOW LIST OF CCOUNTS

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