Journal entry for short-term note payable. On December 1, Sung Company obtained a 60 -day loan for \(\$ 50,000\) from the City State Bank at an annual interest rate of 6 percent. On the maturity date, the bank renewed the note for another 30 days, and Sung Company issued a check to the bank for the accrued interest. Sung Company closes its books annually at December 31 .

a. Present entries on the books of Sung Company to record the issue of the note, the year-end adjustment, the renewal of the note, and the payment of cash at maturity of the renewed note.

b. Present entries at the maturity date of Sung Company's original note for the following variations in the settlement of the note.

(1) Sung pays the original note at maturity.

(2) Sung Company renews the note for 30 days; the new note bears interest at 9 percent per annum. Sung did not pay interest on the old note at maturity.