Account for a short-term note payable

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(Learning Objective 1: Account for a short-term note payable) Gordon Sports Authority purchased inventory costing $11,000 by signing a 12% short-term note payable. The purchase occurred on July 31, 2012. Gordon pays annual interest each year on July 31. Journalize the company’s (a) purchase of inventory; (b) accrual of interest expense on April 30, 2013, which is the year-end; and (c) payment of the note plus interest on July 31, 2013. (Round your answers to the nearest whole number) (d) Show what the company would report on its balance sheet at April 30, 2013, and on its income statement for the year ended on that date.

Reference no: EM13746969

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