$5$ On October $1,$ Johnson signed a $$40,000,120-$day, $6\%$ note payable to borrow funds to cover the purchase of new equipment.

REQUIREMENT $($Use the Solution Packet and Show All Work$)$:

A$.$ Prepare Johnson's journal entry to record the transaction on October $1$ st$.$

B$.$ Prepare Johnson's journal entry to record any necessary adjustments on December $31$st$.$

C$.$ Prepare Johnson's journal entry to record the payment of the note payable on Feb $1$st of the following year.