1. Prepare journal entries necessary to record the transactions. 2. Assume that the company's financial years ends on December 31, and that no adjusting entries relative to the transactions above have been recorded. Prepare any adjusting entries concerning interest that are necessary to present fair financial statements on December 31.

Case 2 Described below are certain transactions of Casio Company: Feb 1 April 1 The company purchased goods from Joy Corp. for P180,000 subject to cash discount terms of 2/10, n/30. The company records purchases and accounts payable at net amounts after cash discounts. The company purchased a truck for P150,000 from Broom-Broom Company, paying P30,000 in cash and signing a 10% note for the balance of the purchase price. The company borrowed P250,000 from Pautang Bank by signing a P287,500 noninterest-bearing note due one (1) year from May 1. The company's board of directors declared P1,000,000 cash dividend that was payable on September 10 to shareholders of record on August 31. May 1 Aug 1