Q1. Botjen Corporation, whose fiscal year ends June 30, completed the following transactions involving notes payable:

May 11 Signed a 90-day, 12 percent, $66,000 note payable to Shire Bank for a working capital loan. The face value included interest. Proceeds received were $64,020.

21 Obtained a 60-day extension on an $18,000 trade account payable owed to a supplier by signing a 60-day, $18,000 note. Interest is in addition to the face value, at the rate of 14 percent.

June 30 Made end-of-year adjusting entry to accrue interest expense on supplier note.

30 Made end-of-year adjusting entry to recognize interest accrued on bank note. July 20 Paid off the note plus interest due the supplier.

Aug. 9 Paid amount due to the bank on the 90-day note. Prepare entries in journal form for the notes payable transactions.

Q2. Csizczak Plywood Company, whose fiscal year ends December 31, completed the following transactions involving notes payable:

20X1

Nov. 25 Purchased a new loading cart by issuing a 60-day, 10 percent note for $21,600.

Dec. 16 Borrowed $25,000 from the bank to finance inventory by signing a 90-day note. The face value of the note includes interest of $750. Proceeds received were $24,250.

31 Made the end-of-year adjusting entry to accrue interest expense on cart note.

31 Made the end-of-year adjusting entry to recognize the interest accrued on the note to the bank.

20X2

Jan. 24 Paid off the loading cart note.

Mar. 16 Paid off the inventory note to the bank. Prepare entries in journal form for these transactions.