1. Notes Payable On December 1, 2019, Insto Photo Company purchased merchandise, invoice price $25,000, and issued a 12%, 120-day note to Ringo Chemicals Company. Insto uses the calendar year as its fiscal year and uses the perpetual inventory system. Required: Prepare journal entries on Instos books to record the preceding information, including the adjusting entry at the end of the year and payment of the note at maturity.

2.First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. LO 9.3 SHOW ME HOW Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity.

3.Short-Term Debt Expected to Be Refinanced On December 31, 2019, Carrboro Textile Company had short-term debt in the form of notes payable totaling $600,000. These notes were due on June 1, 2020. Carrboro expected to refinance these notes on a long-term basis. On February 1, 2020, Carrboro entered into an agreement with Worldwide Life Insurance Company whereby Worldwide will lend Carrboro $450,000, payable in 5 years at 12%. The money will be available to Carrboro on May 20, 2020. Carrboro issues its December 31, 2019, year-end financial statements on March 2, 2020. Required: 1. Show how the $600,000 notes payable will be classified on Carrboro Textiles balance sheet on December 31, 2019. 2. Next Level What is necessary in order for a company to exclude short-term debt that is expected to be refi-nanced on a long-term basis from the current liability classification?

4. Unearned Revenue: Gift Certificates On December 5, 2019, Super Circuit Store sold gift certificates totaling $12,000. By December 31, 2019, all but $2,125 worth of these certificates had been redeemed for merchandise. Outstanding certificates were then redeemed by January 15, 2020. Required: 1. Prepare journal entries on Super Circuits books to reflect the preceding transactions. 2. How would the gift certificates be reported on Super Circuits balance sheet on December 31, 2019?