Payable Transactions}

Richmond Company engaged in the following transactions during 2018:

a. Purchased \(\$ 16,000\) of supplies from ABC Supplies on February 16. Amount due in full on March 31 .

b. Paid for \(25 \%\) of the purchased supplies (transaction

a) on February 26.

c. On March 31 negotiated a payment extension with \(\mathrm{ABC}\) for the remainder of the balance from the February 16 purchase by signing a one-year, \(10 \%\) note.

d. Borrowed \(\$ 300,000\) on a 10 -month, \(8 \%\) interest-bearing note on April 30 .

e. Purchased \(\$ 78,000\) of merchandise on June 4. Amount due in full on June 30 .

f. Paid for the purchased merchandise (transaction \(e\) ) on June 24.

g. Received from Haywood Inc. on August 19, a \(\$ 22,000\) deposit against a total selling price of \(\$ 220,000\) for services to be performed for Haywood.

h. On December 15, Richmond completed the services ordered by Haywood on August 19. Haywood's remaining balance of \(\$ 198,000\) is due on January 31 .

\section*{Required:}

1. Prepare journal entries for these transactions.

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

Problem