Exercise 1. Rob Johnson Company had the following transactions involving Notes Payable. July 1, 20X1 Borrowed $50,000 from the Third National Bank by signing a 9-month, 4% note. Aug. 1, 20X1 Signed a 2-month 6% Note Payable for $20,000 to Stewart Company for an existing Account Payable. Oct. 1, 20X1 Paid the principal and interest on the note to Stewart Company. Nov. 1, 20X1 Borrowed $60,000 from Cooper Bank by signing a 3-month 9% note. Dec. 31, 20X1 Prepared Adjusting Journal Entries for calendar year. Feb. 1, 20X2 Paid the principal and interest on the Cooper Bank note April 1, 20X2 Paid the interest to Third National Bank on the Note and then signed a new 6-month 12% note for the principal (compound entry). a) Prepare the journal entries for these transactions.

b) What should be the amount shown on the Dec.31 Balance Sheet in the Current Liability section for Notes Payable?