We, Premium Appliances purchase inventory from various appliance manufacturers around the globe. On August 1, 2020, we had purchased $85,000 of inventory. But at the time of purchase, we had a cash shortage, as all of our available cash was used in purchasing a new truck. So instead, we paid $7,000 down and signed an 8%, 184 day note for the remaining balance. We havent recorded any entries related to this Note Payable, or accrued interest.

Required (a) Record the purchase of inventory and issuance of the short term note payable. (3 marks) (

b) Record the accrual of interest on December 31, 2020 (153 days later). Round response to the nearest cent. (ie $53.62) (4 marks)

(c) Determine the balance of any current liabilities associated with the note payable that would be on the balance sheet for December 31, 2020. (2 marks)

(d) We need to settle this note payable next month. Could you please prepare the entry to record payment of the note on January 31, 2021. Round response to the nearest cent. (6 marks)