Lippborg Inc. had the following transactions during the current fiscal year ending 31. December 2020 .

1. Aug.

They borrowed $ 65.000 from Heaven Bank, signing a 3-months, 7,5% Note Payable.

15. Oct.

Lippborg Inc. purchased a machine from Machine Corp for $ 48.000. Machine Corp agreed to accept, as full payment, a 8%, 2-month Note for the $ 48.000 invoice amount.

1. Nov.

Lippborg Inc. paid Heaven Bank the Note Payable plus the accrued interest.

15. Nov

Lippborg Inc. purchased raw materials from United Steel Corp. for $ 88.000. United Steel Corp. accepted a 6-months, 8% Note as full settlement of the purchase.

15. Dec.

The $ 48.000 Note Payable to Machine Corp matured today and Lippborg Inc. paid the accrued interest plus $ 8.000 on this Note and issued a new 4-months, 9 % Note Payable in the amount of $ 40.000 to partly replace the Note matured.

Instruction: (show your calculations and round to 2 decimal places)

1. Prepare Journal Entries to record the above transactions.

2. Prepare the adjusting entry needed at 31. December 2021 for the year end closing. Use one entry for all two notes.

In total there should be 6 transactions (dates) and the debit / credit entries for the related accounts. (Each transaction 3 points)