Helen Parish started a design company on January 1, 2016. On April 1, 2016, Parish borrowed cash from a local bank by issuing a one-year $120,000 face value note with annual interest based on an 8 percent discount. During 2016, Parish provided services for $72,000 cash.

Required

Answer the following questions. Record the events in T-accounts prior to answering the questions. (Select "1, 2, or 3" for the transactions in the order they take place.)

Cash					Notes Payable
Beg. Bal.					Beg. Bal.
End. Bal.					End. Bal.
Service Revenue					Discount on Notes Payable
Beg. Bal.					Beg. Bal.
End. Bal.					End. Bal.
Interest Expense
Beg. Bal.
End. Bal.