On

August 1August 1,

20192019,

The ResortThe Resort

at Mill Lake, Inc., purchased inventory costing

$ 50 comma 000$50,000

by signing

aa

66%,

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

LOADING...

.

Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.)

Journal Entry
Date		Accounts	Debit	Credit
2019
Aug	1	Cash	50000
		Note Payable, Short-term

Requirement 2. Make the adjusting entry for accrual of interest on the note payable on December 31,

20192019.

(Record debits first, then credits. Exclude explanations from journal entries.)

Journal Entry

Date

Accounts

Debit

Credit

2019

Dec

31

Interest Expense

Interest Payable

Requirement 3. At December 31,

20192019,

what is reported on the balance sheet related to this note payable? (If a box is not used in the table, leave the box empty; do not select a label or enter a zero.)

Balance Sheet (partial) on December 31, 2019

Account

Amount

Current assets:

Interest payable

Note payable, short-term

Requirement 4. Record the payment of the note payable (principal and interest) on its maturity date. (Record debits first, then credits. Exclude explanations from journal entries.)

Journal Entry

Date

Accounts

Debit

Credit

2020

Feb

1

Note Payable, Short-term

Interest Payable

Interest Expense

Cash