Described below are certain transactions of Lamar Company for 2018:

1.		On May 10, the company purchased goods from Fox Company for $72,400, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18.
2.		On June 1, the company purchased equipment for $94,800 from Rao Company, paying $34,800 in cash and giving a one-year, 9% note for the balance.
3.		On September 30, the company discounted at 10% its $200,000, one-year zero-interest-bearing note at Virginia State Bank.

Prepare the journal entries necessary to record the transactions above using appropriate dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
May 10
May 18
June 1
September 30

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Prepare the adjusting entries necessary at December 31, 2018 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.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31
	(To record interest expense)
Dec. 31
	(To record amortization of discount)

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Indicate the manner in which the above transactions should be reflected in the Current Liabilities section of Lamar Company's December 31, 2018 balance sheet.

Current Liabilities
Interest Payable Note PayableRao Company Interest Receivable Note PayableVirgina State Bank Discount on Note				$
Interest Receivable Premium on Note Interest Payable Note PayableRao Company Discount on Note
Interest Payable Interest Receivable Note PayableVirgina State Bank Discount on Note Premium on Note		$
Less Add : Interest PayableNote PayableRao CompanyNote PayableVirgina State BankDiscount on NotePremium on Note
				$