Chapter 13 Current Liabilities and Contingencies

Need help with the red mark. Thanks!

The following are selected 2017 transactions of Bramble Corporation.

Sept. 1		Purchased inventory from Encino Company on account for $42,800. Bramble records purchases gross and uses a periodic inventory system.
Oct. 1		Issued a $42,800, 12-month, 8% note to Encino in payment of account.
Oct. 1		Borrowed $42,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $47,760 note.

Exercise 13-2 The following are selected 2017 transactions of Bramble Corporation Sept. Purchased inventory from Encino Company on account for $42,800. Bramble records 1 purchases gross and uses a periodic inventory system Oct. 1 Oct.1 Issued a $42,800, 12-month, 8% note to Encino in payment or account. Borrowed $42,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $47,760 note. Your answer is partially correct. Try again. 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 tities are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit Credit September Purchases 2,800 Accounts Payable 1428001 unts Payab 2,B00 ates Payabl October 1 Cost 2,B0O Discount on Notes Payable3,424 0 ates Payabl 46,224 Your answer is partially correct. Try again. Prepare adjusting entries at December 31. (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, Round answers to o decma places, e.9- 5,125. Date Account Titles and Explanation Debit Credit December 31 unterest Expense Interest Payable (To record interest on the note) December 31 gnterest Expense 856 Discount on Notes Payable 856 To record ciscount on the note) Your answer is partially correct. Try again. Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing note (2) The zero-interest-bearing note .143,656