Problem 13-01 Described below are certain transactions of Grouper Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $70,700 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2. On April 1, the corporation bought a truck for $46,000 from General Motors Company, paying $3,000 in cash and signing a one-year, 10% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $86,700 from Chicago National Bank by signing a $95,340 zero-interest-bearing note due one year from May 1. 4. On August 1, the board of directors declared a $282,000 cash dividend that was payable on September 10 to stockholders of record on August 31. Account Titles and Explanation Debit Credit Date February 2 Purchases 69286 | Accounts Payable 69286 TFebruary 26 TAccounts Payable 69286|| Purchase Discounts Lost 1414 T T Cash 70700 (April 1 Trucks 46000 T | Notes Payable 43000 T Cash 3000 May 1 Ca 867001 Discount on Notes Payable 8640 T Notes Payable 95340 2 August 1 Y Retained Earnings 282000 T Dividends Payable 282000 T September 10 Dividends Payable 2820001T TCash 282000 Your answer is partially correct. Try again. Grouper Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Account Titles and Explanation Debit Credit 1. No Entry No Entry . 2. Interest Expense Interest Payable 3. Interest Expense Discount on Notes Payable 4. No Entry No Entry