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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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