Exercise 1 The following are selected, 2020 transactions of Amador Corporation, the first year of operations. 2020 1-Jan-20 Issued a $85,000, 6-month, 5% note to Boschini to purchase equipment. Purchased inventory from Attiq Company on account for $152,000. Amador 1-Aug-20 records purchases gross and uses a perpetual inventory system. Paid Attiq Co $37,000 in cash, and issued a $115,000, 12-month, 12% note to 1-Sep-20 Attiq for the remaining balance. Borrowed $125,000 from the Alkhawri Bank by signing a 12-month, 0% interest- 1-Oct-20 bearing $139,000 note. 2020 1-Sep-21 Paid the full amount due on the note issues 1-Sep-2020. 1-Oct-21 Paid the full amount due on the note issues 1-Oct-2020. Instructions 1. 2. Prepare journal entries for the selected 2020 transactions above. Prepare adjusting entries at December 31. (Use straight-line amortization of the discount.) Compute the total net liability to be reported on the December 31 balance sheet for: the interest-bearing note. the zero-interest-bearing note. (Use straight-line amortization.) Prepare journal entries for the 2021 transactions above. 3. a. b. 4