On April 1, Warren received a $30,000, 10 percent note from a customer in settlement of a $30,000 account receivable. According to the terms, the principal and interest on the note are payable at the end of 12 months on March 31. 2. On August 1, to meet a cash shortage, Warren obtained a $20,000, 12 percent loan from a local bank. The principal and interest on the note are payable at the end of six months on January 31. Required: Warren Corporation's year-end is December 31. Record all the entries related to the notes in Years 1 and 2. The relevant dates are: S Year 1: April 1 August 1 December 31 View transaction list No 1 2 3 4 Year 2: January 31 March 31 View journal entry worksheet Date Year 1 April 1 Year 1 August 1 Year 1 December 31 Year 1 December Notes receivable Accounts receivable Cash Notes payable Interest receivable Interest revenue Interest expense General Journal Debit 30,000 20,000 2,250 1.000 Credit 30,000 20,000 2,250

Warren Corporation had the following transactions in Year 1: 1. On April 1, Warren recelved a $30,000, 10 percent note from a customer in settlement of a $30,000 account recelvable. According to the terms, the principal and interest on the note are payable at the end of 12 months on March 31: 2. On August 1, to meet a cash shortoge, Warren obtained a $20,000,12 percent loan from a local bank. The principel and interest on the note are payoble at the end of six months on January 31 Required: Warren Corporation's year-end is December 31. Record all the entries related to the notes in Years 1 and 2 . The celevant dates aree