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The following are selected 2020 transactions of Concord Corporation.
Sept. 1 Purchased inventory from Orion Company on account for $45,600. Concord uses a periodic inventory system. Oct. 1 Issued a $45,600, 12-month, 9% note to Orion in payment of Concord's account.1 Borrowed $75,100 from the bank by signing a 12-month, non-interest-bearing $81,000 note.
Question 1: Prepare the journal entries for the payment of the notes at maturity. Assume no other accruals of interest were recorded since the December 31, 2020 year end.
Question 2: Prepare the journal entries for the payment of the notes at maturity, assuming the company uses reversing entries. (Show the reversing entries at January 1, 2021.)
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