The following are selected 2020 transactions of Ayayai Corporation. Sept. 1 Oct. 1 Oct. 1 Purchased...

   

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The following are selected 2020 transactions of Ayayai Corporation. Sept. 1 Oct. 1 Oct. 1 Purchased inventory from Encino Company on account for $43,000. Ayayai records purchases gross and uses a periodic inventory system. Issued a $43,000, 12-month, 8% note to Encino in payment of account. Borrowed $43,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $46,440 note. 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.) Date October 1 List of Accounts Account Titles and Explanation Debit Credit Date Account Titles and Explanation December 31 December 31 (To record interest on the note) (To record discount on the note) List of Accounts Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing note (2) The zero-interest-bearing note List of Accounts $ $ Debit Credit Attempts: 0 of 4 used Save for Later Submit Answer The following are selected 2020 transactions of Ayayai Corporation. Sept. 1 Oct. 1 Oct. 1 Purchased inventory from Encino Company on account for $43,000. Ayayai records purchases gross and uses a periodic inventory system. Issued a $43,000, 12-month, 8% note to Encino in payment of account. Borrowed $43,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $46,440 note. 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.) Date October 1 List of Accounts Account Titles and Explanation Debit Credit Date Account Titles and Explanation December 31 December 31 (To record interest on the note) (To record discount on the note) List of Accounts Compute the total net liability to be reported on the December 31 balance sheet for: (1) The interest-bearing note (2) The zero-interest-bearing note List of Accounts $ $ Debit Credit Attempts: 0 of 4 used Save for Later Submit Answer

Answer rating: 100% (QA)

Prepare Journal Entries for Selected Transactions Above Date Accounts Title and E... View the full answer