ENTRIES FOR, AND FINANCIAL STATEMENT PRESENTATION OF A NOTE Perez Company borrowed $60,000 from the First National Bank on April 1, 2008, on a three-year, 8.7 percent note. Interest is paid annually on March 31.

Required:

. Record the borrowing transaction in Perez’s journal.

. Prepare the adjustments made at December 31, 2008 and 2009.

. Prepare the necessary journal entry to recognize 2008 interest to date and the first interest payment on March 31, 2009.

. Indicate how the note and associated interest would be presented in Perez’s December 31, 2009, balance sheet.

. Prepare the necessary journal entry to record the repayment of the note and the last year’s interest on March 31, 2011.