Exercise 13-2 (Part Level Submission)

The following are selected 2017 transactions of Sheffield Corporation.

Sept. 1Purchased inventory from Encino Company on account for $37,600. Sheffield records purchases gross and uses a periodic inventory system.Oct. 1Issued a $37,600, 12-month, 8% note to Encino in payment of account.Oct. 1Borrowed $37,600from the Shore Bank by signing a 12-month, zero-interest-bearing $41,680note.

(a)

Prepare journal entries for the selected transactions above.