General Journal tab - Prepare the Year 1 journal entries related to the notes and accounts payable of Sanchez Co.

1. Purchased $41,750 of merchandise on credit from Taylor, terms n30. Sanchez uses the perpetual inventory system.

2. Replaced the April 20 account payable to Taylor with a 90-day, $38,000 note bearing 10% annual interest along with paying $3,750 in cash.

3. Borrowed $90,000 cash from NYR Bank by signing a 120-day, 9% interest-bearing note with a face value of $90,000.

4. Paid the amount due on the note to Taylor at the maturity date.

5. Paid the amount due on the note to NYR Bank at the maturity date.

6. Borrowed $51,000 cash from Albany Bank by signing a 60-day, 8% interest-bearing note with a face value of $51,000.

7. Recorded an adjusting entry for accrued interest on the note to Albany Bank.

The January 1 , Year 1 trial balance for the Clark Company is found on the trial balance tab. The beginning balances are assumed. Sanchez Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $41,750 of merchandise on credit from Taylor, terms n/30. May 19 Replaced the April 20 account payable to Taylor with a 90 -day, 10\%, $38,000 note payable along with paying $3,750 in cash. July 8 Borrowed $90,000 cash from NYR Bank by signing a 120-day, 9\%, $90,000 note payable. August 17 Paid the amount due on the note to Taylor at the maturity date. November 5 Paid the amount due on the note to NYR Bank at the maturity date. November 28 Borrowed $51,000 cash from Albany Bank by signing a 60-day, 8\%, $51,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank. Year 2 January 27 Paid the amount due on the note to Albany Bank at the maturity date