2019 July 1 Borrowed $25,000 cash from POL Bank by signing a 7%, 6-month, $25,000 note. October 1 Purchased Land from GHI ltd. by signing a 9%, 2-month, $40,000 note. November 1 Purchased $60,000 of merchandise on credit from XYZ ltd, terms are n/30. PQR uses the perpetual inventory system. December 1 Paid the amount due on the note to GHI ltd. at the maturity date. December 1 Replaced the account payable of XYZ ltd. with a 10%, 3-month, $60,000 note. December 31 Accrued interest on the notes payable.. 2020 January 1 Paid the amount due on the note to POL Bank at the maturity date. March 1 Paid the amount due on the note to XYZ ltd. at the maturity date.

Question No. 9 Prepare the current liabilities section at December 31, 2019. Also, journalize the transactions of year 2020.