1. On August 1, 2018 Barkley Corporation purchased equipment for $90,000 from RCH Company, paying $18,000 in cash and signing a 9% note for the balance. Interest and the note balance are due in full on July 31, 2019.2. On September 30, 2018, Barkley Corporation borrowed $275,862 from Fast Eddies Financing. Barkley signed a promise to pay contract -- agreeing to pay $300,000 at the end of 12 months on September 30, 2019. Barkley Corporation has a year-end of December 31st. Required:

a. For each situation above, prepare journal entries for 2018, including necessary adjusting entries at year-end 2018 for both situations.

b. Next, prepare the journal entries necessary in 2019 for both situations above.