Prepare the journal entries for the following transactions in 2020. The company is using straight line method to depreciate the assets. 1/1 Purchase an equipment $400,000 for cash. 3/1 Sold a computer that was purchased on 1/1/2017 for $8,000. The computer cost $60,000. It had 5 years useful life and estimated salvage value $0. 4/1 Borrowed $500,000 from HSBC by signing a 12-month, 12% note. 5/1 Sold merchandize for cash totaling $124,200, which includes 8% sales taxes. 6/1 Purchased merchandize on account from Happy Company, $150,000, terms 2/10, n/30 7/1 Issued a 9%, 2-month, $150,000 note to Happy Company in payment of account. 8/31 Paid face value and interest on Happy Company note. 12/31 Prepare an adjusting entry on HSBC note (Please copy the following table into the answer space and insert the rows for preparing the answers.) Date Account Titles Dr. Cr