Lyon Company had the following transactions:

Apr. 8 Issued a \(6,000,60\)-day, six percent note payable in payment of an account with Bennett Company.

May 15 Borrowed \(\$ 40,000\) from Lincoln Bank, signing a 60-day note at nine percent.

June 7 Paid Bennett Company the principal and interest due on the April 8 note payable.

July 6 Purchased \(\$ 14,000\) of merchandise from Bolton Company; signed a 90-day note with ten percent interest July 14 Paid the May 15 note due Lincoln Bank.

Oct. 2 Borrowed \(\$ 30,000\) from Lincoln Bank, signing a 120 -day note at nine percent.

4 Defaulted on the note payable to Bolton Company.

Required

a. Record these transactions in general journal form.

b. Record any adjusting entries for interest in general journal form. Lyon Company has a December 31 year-end.