Johnson Company had the following selected transactions during 2020. Johson uses a periodic

inventory system and prepares financial statements quarterly. Interest on all promissory notes is paid at

maturity.

Jan. 27 Purchased merchandise on account from Laney Company for $18,000.

Feb. 22 Issued an 8%, $18,000 promissory note (due April 23) to Laney Company in settlement of our accounts payable with them.

Mar. 31 Accrued interest for 37 days on the Laney note payable.

Apr. 23 Paid the principal and interest on the Laney note.

Dec. 9 Borrowed $15,000 from CIBC by signing an 8% promissory note due May 5, 2021.

Dec. 31 Accrued interest for 22 days on the CIBC note.

Instructions:

Prepare journal entries for the above transactions.