ETT - TB Willingham Company had the following transactions involving notes payable . Aug. 1, 2017 Borrows $ 200,000 from Fourth National Bank by signing a 9 - month , 1296 note* Dec . 1 , 2017 Borrows $ 120, 000 from Arkansas State Bank by signing a 3 - month , 10% note . Dec . 31, 2017 Prepares adjusting entries . March 1 , 2018 Pays principal and interest to Arkansas State Bank . May 1 , 2018 Pays principal and interest to Fourth National Bank. Instructions Prepare journal entries for each of the transactions