Interest-Bearing Note Replacing an Unpaid Account Payable Conti Products owed $80,000 on account for inventory purchased on December 1, 2014. Conti uses a perpetual inventory system and has a fiscal year that ends on December 31. Conti was unable to pay the amount owed by the March 1, 2015, due date because of financial difficulties. On March 1, 2015, Conti signed a 4-month, $80,000, 6% interest-bearing note. This note was repaid with interest on July 1, 2015. Required: If no entry is required, type "No entry required" and leave the amount boxes blank.

Hide 1. Prepare the entry recorded on December 1, 2014.

2014 Dec. 1 (Record purchase of inventory on account)

Hide 2. Prepare the adjusting entry recorded on December 31, 2014.

2014 Dec. 31 (Year end adjustment)

Hide 3. Prepare the entry recorded on March 1, 2015.

2015 Mar. 1 (Record issuance of note to cover unpaid account payable)

Hide 4. Prepare the entry recorded on July 1, 2015. If an amount box does not require an entry, leave it blank.

2015 July 1 (Record payment of note and interest)