On August 1, 2019, The Villas at Mill Lake, Inc., purchased inventory costing $60,000 by signing an 8%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date. Read the requirements. Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Accounts Date Debit Credit 2019 Aug 1 60,000 Inventory Note Payable, Short-term 60,000 Requirement 2. Make the adjusting entry for accrual of interest on the note payable on December 31, 2019. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Accounts Date Debit Credit Requirements 2019 Dec 31 Interest Expense 1. 2. Cash Interest Expense Interest Payable Inventory Choose from an Note Payable, Short-term Journalize the company's purchase of inventory. Make the adjusting entry for accrual of interest on the note payable on December 31, 2019. At December 31, 2019, what is reported on the balance sheet related to this note payable? Record the payment of the note payable (principal and interest) on its maturity date. 3. 4. eck Answer. Jungle Publishing completed the following transactions for one subscriber during 2018: (Click the icon to view the transactions.) Requirement 1. Journalize these transactions (explanations not required). Then report any liability on the company's balance sheet at December 31, 2018. (Record debits first, then credits. Exclude explanations from journal entries.) Start by journalizing the October 1st transaction. Recall Jungle Publishing sold a one-year subscription, collecting cash of $2,100, plus sales tax of 14%. Journal Entry Accounts Date Debit Credit Oct More Info Oct 1 Cash Equipment Interest Expense Note Payable, Short-Term Sales Tax Payable Subscription Revenue Unearned Subscription Revenue Sold a one-year subscription, collecting cash of $2,100, plus sales tax of 14%. The subscription will begin on October 1. Remitted (paid) the sales tax to the state of Ohio. Made the necessary adjustment at year-end. Nov 15 Dec 31 Print Done Pine Systems' revenues for 2018 totaled $27.1 million. As with most companies, Pine is a defendant in lawsuits related to its products. Note 14 of the Pine annual report for 2018 reported the following: (Click the icon to view the note.) Read the requirements Requirement 1. Suppose Pine's lawyers believe that a significant legal judgment against the company is reasonably possible. How should Pine report this situation in its financial statements? First, let's decide how the lawsuit should be reported in the financial statements. The lawsuit should be reported by accruing a liability be reported by accruing a liability and including a note be reported by including a note similar to Note 14 not be reported Requirements x More Info 1. Suppose Pine's lawyers believe that a significant legal judgment against the company is reasonably possible. How should Pine report this situation in its financial statements? 2. Suppose Pine's lawyers believe it is probable that a $2.1 million judgment will be rendered against the company. In general terms, how would this situation be reported in Pine's financial statements (using U.S. GAAP)? 14. Contingencies The company is involved in various legal proceedings.... It is the Company's policy to accrue for amounts related to these legal matters if it is probable that a liability has been incurred and an amount is reasonably estimable