Accounts and Notes Payable

The following are selected 2022 transactions of Orion Company.

Nov 1 Purchased inventory on account for $500,000 from Seller Company. Orion uses the perpetual inventory method.

Dec 1 Issued a $500,000, 6-month, 9% note payable to Seller Company in payment of the November 1 account payable.

Dec 1 Borrowed $330,000 from Second National Bank by signing a 12-month, zero-interest bearing $360,000 note payable.

Instructions:

(a) Prepare journal entries for each of the transactions above.

(b) Prepare any necessary adjusting entries at December 31, 2022, for the transactions

above.