The following were among the transactions of Cliff Shop dur¬

ing this year. The firm’s fiscal year ends on December 31.

Instructions 1. Record these transactions in one of the following journals; cash receipts jour¬
nal (page 13), cash payments journal (page 18), and general journal (page 10).
2. Immediately after each journal entry, record each note in the notes payable register (page 5). Eill in the date paid after journalizing the entry to pay the note, or fill in “renewed” if not paid.

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Jan. Feb. 12 Bought merchandise on account from Harkness Company, $3,895; terms net 30 days. 11 Gave a 30-day, 10 percent note to Harkness Company, dated Feb- ruary 11, to apply on account, covering purchase of January 12, $3,895. Mar. 13 Paid $1,895 as part payment on principal as well as the full interest on the note given to Harkness Company (Ck. No. 819). Issued new note for $2,000, 60 days, 10.5 percent, dated March 13. May 10 Borrowed $10,100 from Washington Bank for 120 days; discount rate is 10.5 percent. Accordingly, signed a discounted note for $10,100, dated May 10. 12 Paid the amount owed on the note issued to Harkness Company dated March 13 (Ck. No. 911). Sept. 7 Paid the amount owed on the note issued to Washington Bank, dated May 10 (Ck. No. 1051). Nov. 20 Bought a laptop computer for $2,290 from Data Equipment. Issued a 90-day, 10 percent note, dated November 20. Dec. 31 Recorded the adjusting entry for accrued interest on the note given to Data Equipment. Jan. 1 Recorded the reversing entry. (Assume the closing entries were jour- nalized and posted.)