Note $1$: On April $1$ of the current year, Warren Corporation received a $$38,000,5$ percent note from a customer in settlement of a $$38,000$ open account receivable. According to the terms, the principal of the note and interest are payable at the end of $12$ months. Warren$$s fiscal year ends on December $31.$

Note $2$: On August $1$ of the current year, to meet a cash shortage, Warren Corporation obtained a $$38,000,6$ percent loan from a local bank. The principal of the note and interest expense are payable at the end of six months.

Required:

For the relevant transaction dates of each note, indicate the amounts and direction of effects on the elements of the statement of financial position and the statement of earnings. $($Reminder: Assets $=$ Liabilities $+$ Shareholders$$ equity; Revenues $$ Expenses $=$ Net earnings; and net earnings accounts are closed to retained earnings, a component of shareholders$$ equity.$)($Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.$)$ Note $1$: On April $1$ of the current year, Warren Corporation received a $$38,000,5$ percent note from a customer in settlement of a

$$38,000$ open account receivable. According to the terms, the principal of the note and interest are payable at the end of $12$ months.

Warren's fiscal year ends on December $31.$

Note $2$: On August $1$ of the current year, to meet a cash shortage, Warren Corporation obtained a $$38,000,6$ percent loan from a local

bank. The principal of the note and interest expense are payable at the end of six months.

Required:

For the relevant transaction dates of each note, indicate the amounts and direction of effects on the elements of the statement of

financial position and the statement of earnings. $($Reminder: Assets $=$ Liabilities $+$ Shareholders' equity; Revenues $-$ Expenses $=$ Net

earnings; and net earnings accounts are closed to retained earnings, a component of shareholders' equity.$)($Do not round

intermediate calculations. Enter any decreases to account balances with a minus sign.$)$

Answer is not complete.