Warren Corporation had the following transactions in Year 1:
1. On April 1, Warren received a $30,000, 10 percent note from a customer in settlement of a $30,000 account receivable. According to the terms, the principal and interest on the note are payable at the end of 12 months on March 31.
2. On August 1, to meet a cash shortage, Warren obtained a $20,000, 12 percent loan from a local bank. The principal and interest on the note are payable at the end of six months on January 31.

Required:
Warren Corporation’s year-end is December 31. Record all the entries related to the notes in Years 1 and 2. The relevant dates are:

Transcribed Image Text:

Year 1: April 1 August 1 December 31 Year 2: January 31 March 31