25 Sold merchandise for cash totaling $12,420, wllcilI Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and (2) estimated warranty liability, assuming warranty costs are expected to equal 7% of sales of the new product. (Hint: Use one-third of a month for the Girard Bank note.) bility total ilit toa) Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in accounts payable. P11-2A The following are selected transactions of Blanco Company. Blanco prepares and ns; show balance financial statements quarterly entation. Jan. 2 Purchased merchandise on account from Nunez Company, $30,000, terms 2/10, n/30. (Blanco uses the perpetual inventory system.) Issued a 996, 2-month, $30,000 note to Nunez in payment of a Feb. 1 Mar 31 Accrued interest for 2 months on Nunez note. Apr. 1 Paid face value and interest on Nunez note. July 1 Purchased equipment from Marson Equipment paying $11,000 in cash signing a 10%, 3-month, $60,000 note. Accrued interest for 3 months on Marson note. Paid face value and interest on Marson note. Sept. 30 Oct. 1 Borrowed $24,000 from the Paola Bank by issuing a 3-month, 8% note '. face value of $24,000. Dec. 1 Dec. 31 Recognized interest expense for 1 month on Paola Bank note. Instructions journal entries for the listed transactions and events. to the accounts Notes Payable, Interest Payable, and Interest Expense. Show the balance sheet presentation of notes and interest payable at December 31 d) What is total interest expense for the year? lIDGE who are paid on an hourly basis plus ti