1. (5 points) The following are selected 2021 transactions of Blue Corporation. Sept. Purchased inventory from Encino Company on account for $85,500. Blue records purchases 1 gross and uses a periodic inventory system. Oct. 1 Issued a $85,500, 12-month, 8% note to Encino in payment of account. This means Blue turned the A/P balance into a Note Payable. Nov. 1 Borrowed $41,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $53,800 note. a. Prepare the necessary journal entries: Accounts DR CR Date 9/1 10/1 11/1 b. Prepare adjusting entries at December 31. Record the interest on the zero-interest-bearing note evenly over the 12 month term. Accounts DR CR Date 12/31 12/31 c. Compute the total net liability (principal and interest) to be reported on the December 31 balance sheet for: (1) The interest-bearing note (2) The zero-interest-bearing