Heritage Architect Company of Manitoba purchased some modular office furniture on March 10, 2023 that had a cost of $290,000 (ignore GST/PST). Show the journal entries that would record this purchase and payment under these three separate situations:

a. The company paid cash for the full purchase price.

b. The company purchased the furniture on credit with terms 1/30, n/60. Payment was made on April 9, 2023.

c. The company signed a 10%, one-year note for the full purchase price. The note was paid on March 10, 2024, the maturity date. Ignore year-end accruals.

Analysis Component:
What would the impact be on the financial statements at year-end if the company signed a note? What ratio would be affected?