NOTES PAYABLE ENTRIES Milo Radio Shop had the following notes payable transactions:
Apr. 1 Borrowed $5,000 from Builder’s Bank, signing a 90-day, 8% note.
5 Gave a $2,000, 60-day, 7% note to Breaker Parts Co. for purchase of merchandise.
10 Paid $500 cash and gave a $1,500, 30-day, 6% note to M. K. Reynolds in payment of an account payable.
May 10 Paid $500 cash, plus interest, and issued a new $1,000, 30-day, 7% note to M. K. Reynolds.
20 Borrowed $3,500 for 60 days from Builder’s Bank on a non-interest-bearing note. The discount rate is 7%.
June 4 Paid $500 cash, plus interest, to Breaker Parts Co. (see April 5) and gave a new $1,500, 30-day, 7% note to extend time for payment.
9 Paid the principal and interest due on the $1,000 note to M. K. Reynolds. (See May 10.)
30 Paid the principal and interest due on the $5,000 note to Builder’s Bank. (See April 1.)
July 4 Paid the principal and interest due on the $1,500 note to Breaker Parts Co. (See June 4.)
19 Paid the $3,500 non-interest-bearing note to Builder’s Bank. (See May 20.)
REQUIRED
Record the transactions in a general journal.