FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:The following are selected 2020 transactions of Culver Corporation.
Sept.
Purchased inventory from Encino Company on account for $46,800. Culver records purchases gross and uses a periodic
inventory system.
1
Issued a $46,800, 12-month, 8% note to Encino in payment of account.
Oct.
1
Oct.
1
Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note.
Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter O
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.)
Account Titles and Explanation
Date
October 1
Debit
Credit
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