The following are selected 2020 transactions of East Corporation.

Sept. 1	Purchased inventory from Orion Company on account for OMR 100,000. East Corporation records purchases gross and uses a periodic inventory system.
Oct. 1	Issued a OMR 100,000, 12 month, 7% note to Orion in payment of account.
Oct. 1	Borrowed OMR 150,000 from the Sur Bank by signing a 12 month, zero interest bearing OMR 162,000 note.

Instructions

a. Prepare adjusting entries at December 31.

b. Compute the total net liability to be reported on the December 31 statement of financial position for:

1. The interest bearing note.

2. The zero interest bearing note