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On December 1, 2019, Insto Photo Company purchased merchandise, invoice price $32,000, and issued a 6%, 120-day note to Ringo Chemicals Company. Insto uses the calendar year as its fiscal year and uses the perpetual inventory system. Required: Prepare journal entries on Insto's books to record the preceding information, including the adjusting entry at the end of the year and payment of the note at maturity. Chart of Accounts Insto Photo Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 500 Cost of Goods Sold 152 Prepaid Insurance 181 Equipment 511 Insurance Expense 189 Accumulated Depreciation 512 Utilities Expense 521 Salaries Expense LIABILITIES 532 Bad Debt Expense 211 Accounts Payable 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 221 Notes Payable 224 Interest Payable 231 Salaries Payable 250 Unearned Revenue 910 Income Tax Expense 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings Prepare journal entries on Insto's books to record the purchase information, including the adjusting entry at the end of the year and payment of the note at maturity General Journal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

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