The following are selected 2023 transactions of Whispering Winds Corporation. Sept. 1 Purchased inventory from Flint...

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The following are selected 2023 transactions of Whispering Winds Corporation. Sept. 1 Purchased inventory from Flint Ltd. on account for $42,800. Whispering Winds uses a periodic inventory system. Issued a $42,800, 12-month, 8% note to Flint in payment of Whispering Winds's account. Borrowed $75,300 from the bank by signing a 12-month, non-interest-bearing $80,300 note. Oct. 1 1 Prepare the journal entries for the payment of the notes at maturity, assuming the Whispering Winds uses reversing entries. (Show the reversing entries at January 1, 2024.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Flint Note Oct. 1 く Purchases Accounts Payable Oct. 1 V Cash Interest Expense Notes Payable Bank Note: If reversing entry used Oct. 1 Interest Expense Notes Payable Jan. 1 ✓ Notes Payable Interest Expense (To accrue interest expense on non-interest-bearing note) Oct. 1 v Notes Payable Cash (To record repayment of non-interest-bearing note) Debit 42800 75300 5000 3750 3750 80300 Credit 4280 8030 375 375 8030 The following are selected 2023 transactions of Whispering Winds Corporation. Sept. 1 Purchased inventory from Flint Ltd. on account for $42,800. Whispering Winds uses a periodic inventory system. Issued a $42,800, 12-month, 8% note to Flint in payment of Whispering Winds's account. Borrowed $75,300 from the bank by signing a 12-month, non-interest-bearing $80,300 note. Oct. 1 1 Prepare the journal entries for the payment of the notes at maturity, assuming the Whispering Winds uses reversing entries. (Show the reversing entries at January 1, 2024.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Flint Note Oct. 1 く Purchases Accounts Payable Oct. 1 V Cash Interest Expense Notes Payable Bank Note: If reversing entry used Oct. 1 Interest Expense Notes Payable Jan. 1 ✓ Notes Payable Interest Expense (To accrue interest expense on non-interest-bearing note) Oct. 1 v Notes Payable Cash (To record repayment of non-interest-bearing note) Debit 42800 75300 5000 3750 3750 80300 Credit 4280 8030 375 375 8030

Answer rating: 100% (QA)

The journal entries for the payment of the notes at maturity are as follows 1 Payment ... View the full answer