Question

Exercise 13-2 (Part Level Submission) The following are selected 2017 transactions of Windsor Corporation Sept. 1 Purchased inventory from Encino Company on account for $37,600. Windsor records purchases gross and uses a periodic inventory system. Oct. 1 Oct. 1 Issued a $37,600, 12-month, 8% note to Encino in payment of account. Borrowed $37,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $40,920 note Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 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.) DateAccount Titles and Explanation Debit Credit October 1

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Answer 1

Journal entry

Date	account title and explanation	Debit	Credit
Sep 1	Purchases	37600
	Account payable		37600
Oct 1	Notes payable	37600
	Account payable		37600
Oct 1	Cash	37600
	Discount on notes payable	3320
	Notes payable		40920