QUESTION 4 ( 18 POINTS)

Anton Inc. had the following transactions during the current fiscal year ending 31. December 2019 .

1. Aug.

They borrowed $ 30000 from Valley Bank, signing a 3-months, 10,5% Note Payable.

15. Oct.

Anton Inc. purchased a truck from Trusty Cars for $ 15000. Trusty Cars agreed to accept, as full payment, a 5%, 2-month Note for the $ 15000 invoice amount.

1. Nov.

Anton Inc. paid Valley Bank the Note Payable plus the accrued interest.

15. Nov

Anton Inc. purchased merchandise (inventory) from Easy Food Corp. for $ 5000.

Easy Food Corp. accepted a 6-months, 8% Note as full settlement of the purchase.

15. Dec.

The $ 15000 Note Payable to Trusty Cars matured today and Anton Inc. paid the accrued interest on this Note and issued a new 2-months, 12% Note Payable in the amount of $ 15000 to replace the Note matured.

Instruction: (show your calculations and round to 2 decimal places)

(a) Prepare Journal Entries to record the above transactions.

(b) Prepare the adjusting entry needed at 31. December 2019 for the year end closing. Use one entry for all two notes.