Seot: $1$ Purchased imentory from Encino Company on account for $$40,500.$ Pharoah records purchases gross and uses a pariodicinventery system.

Oct. $1$ Issued a $$40,500,12-$month, $8\%$ note to Encino in parment of account.

Oct. $1$ Borrowed $$40,500$ from the Shore Bank by signing a $12-$month, zero$-$interest$-$bearing $$43,740$ note.

$($a$)$

Your answer is carrect.

Prepare journal entries for the selected transactions above. $($if no entry ls requiled, seicet $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order disploped in the problem statement. List all debit entries before credit entries!

$($b$)$

Vour angwar is correct.

Prepara adjusting entriss at December $31.($Of no entry is required select $"$No Entry" for the account titles and enter Ofor the amounts, Credit docount tities ore outomutically indented when amount is entered. Do not indent munuallk Round answers to $0$ decimal places, eg$.5\mathrm{.}125.$ List all debit entries before crodit eneries.$)$

$($To record uliscount in the note$)$

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Llst of Accounts

Attempts: $2$ of $4$ used

Your answer is incorrect

Compute the tota net liability to be reparted on tha Decamber $31$ bal ance shaset for:

$(1)$ The intarest$-$bearing nots

$(2)$ The zero$-$interest$-$bearing note

Compute the total net liability to be reported on the December $31$ balance sheet for:

$(1)$ The interest$-$bearing note $$

$(2)$ The zero$-$interest$-$bearing note $ $$

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