1. On October 1, 2019, Broadway Custom Welding Corporation purchased Lincoln ARC Welding Equipment for $210,000 from A.J. Miller Welding Supply Company, paying $42,000 in cash and signing a 4% note for the balance. Interest and the note balance are due in full on September 30, 2020.

2. On December 1, 2019, Broadway Custom Welding Corporation borrowed $140,000 from First Bank and Trust, LLC. Broadway Custom Welding Corporation signed a promise to pay contract -- agreeing to pay $175,000 at the end of 12 months on November 30, 2020. Broadway Custom Welding Corporation has a year end of December 31st.

Required:

a. For each situation above, prepare journal entries for 2019, including necessary adjusting entries at year end 2019 for both situations.

b. Next, prepare the journal entries necessary in 2020 for each situation above.

c. does the finance arrangement in #2 above from First Bank and Trust, LLC see like a good deal. If yes, give your reason, if no, give your reason.