Question
The following are selected 2020 transactions of Pronghorn Corporation. Sept. 1 Purchased inventory from Encino Company on account for $59,600. Pronghorn records purchases gross and
The following are selected 2020 transactions of Pronghorn Corporation.
Sept. 1 Purchased inventory from Encino Company on account for $59,600.
Pronghorn records purchases gross and uses a periodic inventory system.
Oct. 1 Issued a $59,600, 12-month, 8% note to Encino in payment of account.
Oct. 1 Borrowed $59,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $62,480 note.
Prepare adjusting entries at December 31. Compute the total net liability to be reported on the December 31 balance sheet for:
(1) The interest-bearing note $enter a dollar amount
(2) The zero-interest-bearing note
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
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