Instructions Current Attempt in Progress

The following are selected $2025$ transactions of Larkspur Corporation.

Sept. $1$ Purchased inventory from Encino Company on account for $$30,000.$ Larkspur records purchases gross and uses a

periodic inventory system.

Oct. $1$ Issued a $$30,000,12-$month, $8\%$ note to Encino in payment of account.

Oct. $1$ Borrowed $$30,000$ from the Shore Bank by signing a $12-$month, zero$-$interest$-$bearing $$32,400$ note.

$($a$)$

Prepare journal entries for the selected transactions above. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$

for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the

order displayed in the problem statement. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Cred

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 $31$ balance sheet for the

$V1.$ The interest$-$bearing note

The zero$-$interest$-$bearing note