Exercise 13-2The following are selected 2017 transactions of Shamrock Corporation. Sept. 1 Purchased inventory from Encino Company on account for $55,600. Shamrock records purchases gross and uses a periodic inventory system.Oct. 1 Issued a $55,600, 12-month, 8% note to Encino in payment of account.Oct. 1 Borrowed $55,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $59,960 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.) DateAccount Titles and ExplanationDebitCredit October 1 SHOW LIST OF ACCOUNTSLINK TO TEXT 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.) DateAccount Titles and ExplanationDebitCreditDecember 31 (To record interest on the note)December 31 (To record discount on the note) SHOW LIST OF ACCOUNTSLINK TO TEXT 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 $

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 4P

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Exercise 13-2
The following are selected 2017 transactions of Shamrock Corporation.

Sept. 1 Purchased inventory from Encino Company on account for $55,600. Shamrock records purchases gross and uses a periodic inventory system.
Oct. 1 Issued a $55,600, 12-month, 8% note to Encino in payment of account.
Oct. 1 Borrowed $55,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $59,960 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

October 1

SHOW LIST OF ACCOUNTS
LINK TO TEXT

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)

SHOW LIST OF ACCOUNTS
LINK TO TEXT

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 $

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