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The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed. Clark Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.)

Year 1
Apr.		20		Purchased $49,250 of merchandise on credit from Walsh, terms n/30.
May		19		Replaced the April 20 account payable to Walsh with a 90-day, 14%, $37,000 note payable along with paying $12,250 in cash.
July		8		Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9%, $99,000 note payable.
Aug.		17		Paid the amount due on the note to Walsh at the maturity date.
Nov.		5		Paid the amount due on the note to NJR Bank at the maturity date.
Nov.		28		Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8%, $57,000 note payable.
Dec.		31		Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
Jan.		27		Paid the amount due on the note to Fargo Bank at the maturity date.

General Journal tab - Prepare the Year 1 journal entries related to the notes and accounts payable of Clark Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest expense agrees with the trial balance. Year 2 payment tab - Prepare the January 27, Year 2 entry to record the repayment of the note at maturity.

• Apr. 20. Purchased $49,250 of merchandise on credit from Walsh, terms n30. Clark uses the perpetual inventory system.

Note: Enter debits before credits.

	Date Account Title Debit Credit Apr 20

• Apr. 20. Purchased $49,250 of merchandise on credit from Walsh, terms n30. Clark uses the perpetual inventory system.

Note: Enter debits before credits.

	Date Account Title Debit Credit Apr 20

• Jul. 8. Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9% interest-bearing note with a face value of $99,000.

Note: Enter debits before credits.

	Date Account Title Debit Credit Jul 08

• Jul. 8. Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9% interest-bearing note with a face value of $99,000.

Note: Enter debits before credits.

	Date Account Title Debit Credit Jul 08

• Jul. 8. Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9% interest-bearing note with a face value of $99,000.

Note: Enter debits before credits.

	Date Account Title Debit Credit Jul 08

• Nov. 28. Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $57,000.

Note: Enter debits before credits.

	Date Account Title Debit Credit Nov 28

• Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Note: Enter debits before credits.

	Date Account Title Debit Credit Dec 31

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