Country Bank of Mosman provides short term finance for its clients. The following transactions took place between the bank and its client, Hornsby Construction Centre.

2019

January

March

April

August

1

1

1

1

Hornsby Construction Centre discounted its own 60-day bill of exchange made out to the Country Bank of Mosman. The face value of the bill was $70,000and the bill was discounted at 5% p.a.

Paid the Country Bank of Mosman the amount due on the bill.

Hornsby Construction Centre discounted its own 120-day bill of exchange made out to the Country Bank of Mosman. The face value of the bill was $120,000 and the bill was discounted at 7% p.a.

Paid the Country Bank of Mosman the amount due on the bill.

Required: Provide journal entries for the above transactions and necessary adjustments. The financial year ends at 30 June.