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Intermediate Accounting Please solve as soon as possible, I need this. In 20 minutes. 3. The following are selected 2020 transactions of East Corporation. Sept.
Intermediate Accounting Please solve as soon as possible, I need this. In 20 minutes.
3. The following are selected 2020 transactions of East Corporation.
Sept. 1 | Purchased inventory from Orion Company on account for OMR 100,000. East Corporation records purchases gross and uses a periodic inventory system. |
Oct. 1 | Issued a OMR 100,000, 12 month, 7% note to Orion in payment of account. |
Oct. 1 | Borrowed OMR 150,000 from the Sur Bank by signing a 12 month, zero interest bearing OMR 162,000 note. |
Instructions
- Prepare adjusting entries at December 31.
- Compute the total net liability to be reported on the December 31 statement of financial position for:
- The interest bearing note.
- The zero interest bearing note.
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