Instructions Eddie Edwards and Phil Bell own and operate The Second Hand Equipment Shop. The following transactions involving notes and interest were completed during the last three months of 20- Oct 1 15 Nov 1 1 20 Issued a $6,800, 60-day, 5% note to Mac Farm Equipment for purchase of merchandise. Received a $2,000, 60 day, 0 note from R Chambers in payment for sale of merchandise Discounted the note received from R Chambers on October 15 at Merchants National Bank. The discount rate is 7% Borrowed $5,000 from First National Bank on a three-month, non-interest-bearing note that was discounted at 8% Received a $4,000,0 day, 6.5% note from L. Revsine in payment of an account receivable Issued a check to Mac Farm Equipment in payment of the note issued on October 1, including interest Issued a $3,000, 90 day, 8% note to Remak Tractors to extend time for payment of an account payable Received notification from Merchants National Bank that R Chambers has dishonored his note. Acheck is issued to cover the note plus a $20 bank fee that must be paid to the bank 30 Dec 10 16 General Journal 1. Prepare general journal entries for the transactions 2. Prepare necessary adjusting entries for the notes outstanding on December 31 Assume a 360 day year for interest calculations General Joumal Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 2 3 4 5 6. 7 8 CHART OF ACCOUNTS The Second Hand Equipment Shop General Ledger ASSETS REVENUE 101 Cash 401 Sales 121 Notes Receivable 411 Interest Revenue 122 Accounts Receivable EXPENSES 501 Purchases 123 Accrued Interest Receivable 141 Supplies 145 Prepaid Insurance 181 Equipment 181.1 Accumulated Depreciation-Equipment LIABILITIES 511 Wages Expense 512 Advertising Expense 521 Rent Expense 523 Supplies Expense 525 Phone Expense 532 Bad Debt Expense 535 Insurance Expense 541 Depreciation Expense-Equipment 549 Miscellaneous Expense 551 Interest Expense 201 Notes Payable 201.1 Discount on Notes Payable 202 Accounts Payable 207 Accrued Interest Payable 219 Wages Payable