FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
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(Learning Objective 3: Purchase inventory, accrue interest, and pay a short-term
note) On September 1, 2019, The Shoppes at Forest Lake, Inc., purchased inventory costing
$63,000 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.
Requirements
1. Journalize the company’s purchase of inventory.
2. Make the
3. At December 31, 2019, what is reported on the
4. Record the payment of the note payable (principal and interest) on its maturity date
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