Exercise 13-2 The following are selected 2017 transactions of Teal Corporation. Sept. 1 Oct. 1 Oct. 1 Purchased inventory from Encino Company on account for $43,000. Teal records purchases gross and uses a periodic inventory system. issued a $43,000, 12-month, 8% note to Encino in payment of account. Borrowed $43,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $46,440 note. Your answer is correct. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the accoun automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed Date Account Titles and Explanation Debit Credit T September 1 Purchases 43,000|| Accounts Payable 03 43,000 TOctober 1 Accounts Payable PERERERE Notes Payable 43,000 October 1 Cash 43,000 Discount on Notes Payable 3,440 Notes Payable 46,440 Your answer is correct. Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and 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 Interest Expense 8601 860 Interest Payable (To record interest on the note) December 31 Interest Expense Discount on Notes Payable 860 (To record discount on the note) x Your answer is incorrect. Try again. Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing note 43,000 S X (2) The zero-interest-bearing note 46,440 Click if you would like to Show Work for this question: Open Show Work