1. On January 1, Year 1, Novel Tea, Inc., issued a $20,000, 8%, 10-year mortgage note. The note requires annual payments of $2,717 on December 31. Record the amounts in the Notes Payable T-account below for Year 1 given this information:

2.

Shareholders' Equity:

Common Stock, $1 par value, 1,000,000 authorized, 200,000 shares issued$?

Additional Paid-in Capital1 80,000

Retained Earnings 110,000

Treasury Stock (10,000 shares at $4 each)?

Shareholders' Equity$___?___

3.Shareholders' Equity:

Common Stock, $2 par value, 1,000,000 authorized, ___?____ issued$ 60,000

Additional Paid-in Capital110,000

Retained Earnings100,000