On August 1, 2022, The Village at Mil Lake, Inc., purchased inventory costing $60,000 by signing...

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On August 1, 2022, The Village at Mil Lake, Inc., purchased inventory costing $60,000 by signing an 8%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date. Read the requirements. Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit 2022 Aug 1. Requirements 1. Journalize the company's purchase of inventory. 2. Make the adjusting entry for accrual of interest on the note payable on December 31, 2022. 3. At December 31, 2022, what is reported on the balance sheet related to this note payable? 4. Record the payment of the note payable (principal and interest) on its maturity date. Print Done On August 1, 2022, The Village at Mil Lake, Inc., purchased inventory costing $60,000 by signing an 8%, six-month, short-term note payable. The company will pay the entire note (principal and interest) on the note's maturity date. Read the requirements. Requirement 1. Journalize the company's purchase of inventory. (Record debits first, then credits. Exclude explanations from journal entries.) Journal Entry Date Accounts Debit Credit 2022 Aug 1. Requirements 1. Journalize the company's purchase of inventory. 2. Make the adjusting entry for accrual of interest on the note payable on December 31, 2022. 3. At December 31, 2022, what is reported on the balance sheet related to this note payable? 4. Record the payment of the note payable (principal and interest) on its maturity date. Print Done

Answer rating: 100% (QA)

Answer Note payable is a liability to be paid and it can be either a shortterm or longterm liabili... View the full answer