Question: On April 1 , Year 3 , River s Inc. purchased inventory for $ 2 0 , 0 0 0 by signing a 1 -

On April 1, Year 3, Rivers Inc. purchased inventory for $20,000 by signing a 1-year note payable that is due March 31, Year 4. The interest rate is the market rate of 6%. All interest rates are expressed as an annual rate. Rivers Inc. uses the perpetual inventory system. Assume there is no GST or PST. Rivers Inc. fiscal year end is December 31st.
Required
Prepare the required journal entries from April 1, Year 3 through March 31, Year 4. Round interest to the nearest month.

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