James Howard owns Howard Auto Sales. He periodically borrows money from Bay City State Bank and Trust. He permits some customers to sign short-term notes for their purchases. He usually discounts these notes at the bank. Following are selected transactions that occurred in March 20X1.

DATE			TRANSACTIONS
20X1
Mar.	4		Mr. Howard borrows $25,920 from the bank on a note payable for the business. Terms of the note are 9 percent interest for 45 days.
	11		A 90-day $40,320 note payable to the bank is discounted at a rate of 9 percent.
	22		Sold a car to Darnell Jones for $34,560 on a 75-day note receivable, bearing interest at 10 percent.
	23		Discounted the Jones note with the bank. The bank charges a discount rate of 12 percent.
	25		Sold a car for $40,320 to Henry Thomas. Thomas paid $2,000 cash and signed a 30-day note, bearing interest at 9 percent, for the balance.
	28		Alfred Herron's account receivable is overdue. Howard requires him to sign a 8 percent, 30-day note for the balance of $44,640.

Additional Data

Howard pays all the companys notes payable on time.

Darnell Jones defaults on his $34,560 note and the bank charges the companys checking account for the maturity value of the note and a service fee of $77.

Henry Thomas pays his note on time.

Alfred Herron pays his note on time. Required:

Record each of the March transactions in the general journal.

Record the additional data related to these notes for months other than March in the general journal using the appropriate dates. Analyze: What is the Notes Payable account balance on March 25?

Journal entry worksheet

1. Record borrowal from the bank.

2.Record discount of note payable.

3. Record sale of a car.

4. Record sale of a car.

5. Record sale of car to Henry Thomas.

6. Record sale of car to Henry Thomas.

2,1 Record the entry for the maturity of the $25,920 note.

2,2 Record the entry for the maturity of the $25,920 note.

2,3 Record the entry for the maturity and default of the Darnell Jones note.

2,4 Record the entry for the maturity of the Henry Thomas note.

2,5 Record the entry for the maturity of the Alfred Herron note.

Analyze: what is the notes payable account balance on March 25th?