The following are selected 2017 transactions of Pina Corporation.

Sept. 1		Purchased inventory from Encino Company on account for $37,400. Pina records purchases gross and uses a periodic inventory system.
Oct. 1		Issued a $37,400, 12-month, 8% note to Encino in payment of account.
Oct. 1		Borrowed $37,400 from the Shore Bank by signing a 12-month, zero-interest-bearing $40,800 note.

Prepare journal entries for the selected transactions above. (If no entry is required, select "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 displayed in the problem statement.)

Date	Account Titles and Explanation	Debit	Credit

List of Accounts

Prepare adjusting entries at December 31. (If no entry is required, select "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. Round answers to 0 decimal places, e.g. 5,125.)

Prepare adjusting entries at December 31. (If no entry is required, select "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. Round answers to 0 decimal places, e.g. 5,125.)

Date	Account Titles and Explanation	Debit	Credit
December 31
	(To record interest on the note)
December 31
	(To record discount on the note)

Date	Account Titles and Explanation	Debit	Credit

List of Accounts

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