Give the general journal entry to record each of the following transactions:
1. On June 3, 2019, Nicholson Company issued a 120-day, 9 percent note for $18,000 to purchase new office equipment.
2. Nicholson Company paid the June 3 note when it became due.

3. On September 18, 2019, Nicholson Company borrowed money from the Cedar Springs National Bank by discounting its own 90-day noninterest-bearing $30,000 note payable at a discount rate  of 10 percent.
4. Nicholson Company paid the September 18 note when it became due.

Analyze: If Nicholson had borrowed $30,000 from the bank on September 18, signing a 90-day note, bearing interest of 10 percent, would these be more favorable or less favorable terms for Nicholson than discounting the $30,000 note at 10 percent? Why?