Daymon corporation, whose fiscal year ended June 30, 2010, completed the following transactions involving notes payable:

May 21 Obtained a 60-day extension on an $18,000 trade account payable owed to a supplier by signing a 60-day, $18,000 note. Interest is in addition to face value at a rate of 14%.

June 30 Made the end-of-year adjusting entry to accrue interest expense.

July 20 Paid off the note plus interest due the supplier.

Required:

Prepare journal entries for the notes payable transactions. Leave a blank line between each entry and omit the description. You must show how you arrive at the amounts in the journal entries to receive full points.