Lilley & Taylor, partners in an accounting practice, completed the following selected transactions:

2016

Oct. 31 Performed service for Berger Manufacturing Inc., receiving a $30,000, three-month, 5% note.

Dec. 31 Made an adjusting entry to accrue interest on the Berger note.

2017

Jan. 31 Collected the Berger note.

Feb. 18 Received a 90-day, 8%, $10,000 note from Emerson Ltd., on account.

19 Sold the Emerson note to a financial institution, receiving cash of $9,700.

Nov. 11 Loaned $20,000 cash to Diaz Insurance Agency, receiving a 90-day, 9% note.

Dec. 31 Accrued the interest on the Diaz note.

Requirements

1. Record the transactions in Lilley & Taylor's journal. Round all amounts to the nearest dollar. Explanations are not required.

2. Show what Lilley & Taylor will report on its comparative classified balance sheet at

December 31, 2017, and December 31, 2016.