Exercise 13-2 The following are selected 2017 transactions of Cheyenne Corporation Sept. 1 Purchased inventory from Encino Company on account for $39,400. Cheyenne records purchases gross and uses a periodic inventory system Oct. 1 Oct. 1 Issued a $39,400, 12-month, 8% note to Encino in payment of account. Borrowed $39,400 from the Shore Bank by signing a 12-month, zero-interest-bearing $42,720 note. 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 titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order Date Account Titles and Explanation Debit Credit October 1 Prepare adjusting entries at December 31. (If no entry is required, select "No Entry for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to O decimal places,e.g. 5,125. Date Account Titles and Explanation Debit Credit December 31 To record interest on the note) December 31 To record discount on the note) Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing notes (2) The zero-interest-bearing note g Question Attempts: O of 3 use