Assume the year runs from January 1 to December 31 for the Year 2018. On May 1, Company DEF (The Company) purchased inventories costing $49,000; the Company paid $29,000 in cash and giving a one-year, 9% note for the balance; accrual of interest expense. On August 1, The Company received $6,000 cash for legal services to be performed evenly throughout the six months period (starting on August 1); and the Company started rendering the legal services on August 1. On November 1, The Company paid $5,400 in cash for one year of the rent in advance.

Prepare the journal entries to record the above transactions on May 1, August 1, and November 1 in box .

Prepare the adjusting entries at 31 December 2018 related to the above transactions in box . Assume straight-line amortization method is applied.

Prepare the journal entries to record the payment of the note on the maturity date in box .

Indicate the manner in which the above transactions should be reflected in the Current Liabilities section of The Company's Statement of Financial Position at 31 December 2018 in box