The company borrowed $$50,000$ from HomeTown Financing on April $1,20$X$1,$ at a $5\%$ interest rate per annum. It credited a liability for notes payable. The principal, along with all the interest, is due on April $1,202.$

On January $1,201,$ the company purchased $10$ lawnmowers at $$3,000$ each. It debited fixed assets. The lawnmowers are expected to last for three years with no salvage value.

On December $31,20$X$1,$ Hentzel did not record any adjusting entries with respect to these transactions.

Required:

Prepare all adjusting entries necessary to prepare financial statements for $201$ in accordance with U$.$S$.$ GAAP. Ignore income taxes. $($If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.$)$

Journal entry worksheet

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During its first year of operations, Hentzel purchased supplies in the amount of $$12,000($debited to Supplies inventory$),$ and of this amount, $$3,000$ were unused as of December $31,20$X$1.$

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,],[,,,]]$