E$13\mathrm{.}2($LO $1)($Accounts and Notes Payable$)$ The following are selected $2022$ transactions of Darby Corporation.

Sept. $1$ Purchased inventory from Orion Company on account for $$50,000.$ Darby records purchases gross and uses a periodic inventory system.

Oct. $1$ Issued a $$50,000,12-$ month, $8\%$ note to Orion in payment of account.

Oct. $1$ Borrowed $$75,000$ from the Shore Bank by signing a $12-$month, zero$-$interest$-$bearing $$81,000$ note.

Instructions

a$.$ Prepare journal entries for the selected transactions above.

b$.$ Prepare adjusting entries at December $31.$

c$.$ Compute the total net liability to be reported on the December $31$ statement of financial position for:

The interest$-$bearing note.

The zero$-$interest$-$bearing note.