Payable Transactions}

Daniels Company engaged in the following transactions during 2018:

a. Purchased \(\$ 25,000\) of supplies from XYZ Supplies on January 26. Amount due in full on February 28 .

b. Paid for \(40 \%\) of the purchased supplies (transaction

a) on February 26.

c. On February 28 negotiated a payment extension with \(\mathrm{XYZ}\) for the remainder of the balance from the January 26 purchase by signing a one-year, \(8 \%\) note.

d. Borrowed \(\$ 300,000\) on an eight-month, \(9 \%\) interest-bearing note on July 31 .

e. Purchased \(\$ 150,000\) of merchandise on August 2. Amount due in full on September 30.

f. Paid for the purchased merchandise (transaction

e) on September 28.

g. Received from Martel Inc. on October 4, a \(\$ 40,000\) deposit against a total selling price of \(\$ 400,000\) for services to be performed for Martel.

h. On December 15, Daniels completed the services ordered by Martel on October 4. Martel's remaining balance of \(\$ 360,000\) is due on January 31 .

\section*{Required:}

1. Prepare journal entries for these transactions.

2. Prepare any adjusting entries necessary at December 31,2018 .

\section*{OBJECTIVE (2) Problem