AC 302 CHAPTER 13 QUESTION 2

AC 302 CHAPTER 13 QUESTION 2
Name				Date	
Instructor				Course		
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield						
Primer on Using Excel in Accounting by Rex A Schildhouse						
						
E13-2 (Accounts and Notes Payable) The following are selected 2012 transactions of Darby Corporation.						
						
Sep 1	Purchased inventory from Orion Company on account for					$50,000 
	Darby records purchases gross and uses a periodic inventory system					
Oct 1	Issued a	$50,000 	12-month, 	8%	note to Orion in payment of account.	
Oct 1	Borrowed	$75,000 	from the Shore Bank by signing a 12-month, zero-interest-			
	bearing	$81,000 	note.			
						
Instructions:						
(a) Prepare journal entries for the selected transactions above.						
						
Sep 1	Account Title			Amount		
	Account Title				Amount	
						
Oct 1	Account Title			Amount		
	Account Title				Amount	
						
Oct 1	Account Title			Amount		
	Account Title			Formula		
	Account Title				Amount	
						
(b) Prepare adjusting entries at December 31.						
						
Dec 31	Account Title				Formula	
	Account Title					Formula
						
Dec 31	Account Title				Formula	
	Account Title					Formula
						
"(c) (1) Compute the total net liability to be reported on the December 31 balance sheet for the interest-
         bearing note."						
						
						
		Account Title		Amount		
		Account Title		Amount		
				Formula		
						
"(c) (2) Compute the total net liability to be reported on the December 31 balance sheet for the zero-interest-
         bearing note."						
						
						
		Account Title			Amount	
		Account Title			Amount	
					Formula