Lumen OHM Assessment

Question 1

On December 31, 2020, Wright Enterprises purchased $6,500 of merchandise inventory on a one-year 8% note payable.

Journalize the company’s purchase of merchandise inventory on December 31, 2020.
Journalize the company’s accrual of interest expense on June 30, 2021, its fiscal year-end.
Journalize the company’s payment of the note plus interest on December 31, 2021.

Journal
Date	Description	Debit	Credit
December 31, 2020	Merchandise Inventory	6,500
December 31, 2020	Notes Payable		6,500

June 30, 2021	Interest Expense	260
June 30, 2021	Interest Payable		260

December 31, 2021	Notes Payable	6,500
December 31, 2021	Interest Payable	260
December 31, 2021	Interest Expense	260
December 31, 2021	Cash		7,020