QUESTION 14 Described below are certain transactions of Cherry Company for 2017: On March 10, the company purchased goods from Apples Company for $30,000, terms 215, n 30. Purchases and accounts payabi are recorded at gross amounts and the company uses a periodic inventory system. The invoice was paid on March 18. On May 1, the company purchased equipment for $80,000 from Peaches Company, paying $20,000 in cash and giving a one-year, 8% note for the balance On September 30, the company borrowed $115,000, by signing a one-year zero-interest-bearing $150,000 note at National Bank Required: 2. Prepare the journal entries necessary to record the transactions above using appropriate dates. (4 marks) b. Prepare the adjusting entries necessary at December 31, 2017 in order to properly report interest expense related to the above transactions. Assume straight-line amortization