Notes Payable and Interest On July 1, 2016, Jo's Flower Shop borrowed $28,000 from the bank. Jo signed a ten-month, 8% promissory note for the entire amount. Jo's uses a calendar year-end. Required: 1. Prepare the journal entry on July 1 to record the issuance of the promissory note. Indicate the effect on financial statement items by selecting"-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Date Description 2016 July 1 Journal Debit Credit Assets Balance Sheet Liabilities Stockholders' Equity Revenues Income Statement Net Expenses Income 2. Prepare any adjusting entries needed at year-end. Use months in calculation. Do not round intermediate calculations. Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Journal Date Description 2016 Dec. 31 Balance Sheet Debit Credit Assets = Liabilities Stockholders' Equity Revenues Income Statement Net Expenses Income 3. Prepare the journal entry on May 1 to record the payment of principal and interest. Use months in calculation. Do not round intermediate calculations. If required, round your final answer to the nearest dollar. Indicate the effect on financial statement items by selecting "-" for decrease (or negative effect), "+" for increase (or positive effect) and "NE" for No Entry (or no effect) on the financial statement. Date Description 2017 May 1 Journal Debit Credit Assets Balance Sheet Liabilities Stockholders' Equity Revenues Income Statement Net Expenses Income