Gordon Sports Authority purchased inventory costing $11,000 by signing a 12% short-term note payable. The purchase occurred

Question:

Gordon Sports Authority purchased inventory costing $11,000 by signing a 12% short-term note payable. The purchase occurred on July 31, 2012. Gordon pays annual interest each year on July 31. Journalize the company’s
(a) Purchase of inventory;
(b) Accrual of interest expense on April 30, 2013, which is the year-end; and
(c) Payment of the note plus interest on July 31, 2013.
(d) Show what the company would report on its at April 30, 2013, and on its income statement for the year ended on that date.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...