On August 1, 2022, The Outlets at Mill Lake, Inc., purchased inventory costing $54,000 by signing a 10%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date. Read the requirements. Requirement 1. Joumalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Aug Date 2022 1 Accounts Requirements 1. 2. Debit 4. Credit (800 Journalize the company's purchase of inventory. Make the adjusting entry for accrual of interest on the note payable on December 31, 2022. 3. At December 31, 2022, what is reported on the balance sheet related to this note payable? Record the payment of the note payable (principal and interest) on its maturity date. Print Done - X

On August 1, 2022, The Outlets at Mill Lake, Inc., purchased inventory costing $54,000 by signing a 10%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date. Read the requirements. Requirement 1. Joumalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Aug Date 2022 1 Accounts Requirements 1. 2. Debit 4. Credit (800 Journalize the company's purchase of inventory. Make the adjusting entry for accrual of interest on the note payable on December 31, 2022. 3. At December 31, 2022, what is reported on the balance sheet related to this note payable? Record the payment of the note payable (principal and interest) on its maturity date. Print Done - X

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 14EA: Arvan Patel is a customer of Banks Hardware Store. For Mr. Patels latest purchase on January 1,...

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