Described below are certain transactions of Crane Company for 2021: 1. 2. On May 10, the company purchased goods from Fox Company for $77,000, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18. On June 1, the company purchased equipment for $92,400 from Rao Company, paying $34,800 in cash and giving a one- year, 9% note for the balance. On September 30, the company discounted at 11% its $190,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $171,000. 3. - Your answer is partially correct. Prepare the journal entries necessary to record the transactions above using appropriate dates. Company uses the periodic inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Purchases 75460 Accounts Payable 75460 Accounts Payable 75460 Cash 75460 Equipment 92,400 Cash 34,800 Notes Payable 57600 0 Cash 169100 Discount on Notes Payable 20900 Notes Payable 190.000 Prepare the adjusting entries necessary at December 31, 2021 in order to properly report interest expense related to the above transactions. Assume straight-line amortization of discounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Dec. Interest Expense 31 3024 Interest Payable 3024 (To record interest expense) Dec. 31 Interest Expense 5225 Discount on Notes Payable 5225 (To record amortization of discount) e Textbook and Media List of Accounts Your answer is partially correct. Indicate the manner in which the above transactions should be reflected in the Current Liabilities section of Crane Company's December 31, 2021 balance sheet. Current Liabilities Interest Payable $ 3024 Note Payable-Rao Company V 57600 Note Payable-Virgina State Bank $ 190,000 Less : Discount on Note 15675 174325 $ 234949