The following are selected transactions of Happy basket Company. The company prepares financial statements half-yearly. Jan. 2 Purchased merchandise on account from True joy Company, $30,000, terms 1/10, n/30. Feb. 1 Issued a 9%, 3-month, $30,000 note to True joy in payment of account. Mar. 31 Accrued interest for on True joy note. Apr. 1 Paid face value and interest on True joy note.

July 1 Purchased equipment from Merry moments Equipment paying $10,000 in cash and signing a 9%, 3-month, $32,000 note. Sept. 30 Accrued interest on Merry moments note. Oct. 1 Paid face value and interest on Merry moments note. Dec. 1 Borrowed $20,000 from the City bank by issuing a 6-month, 12% note with a face value of $40,000. Dec. 31 Recognized interest expense on City bank note. Instructions 10 (a) Prepare journal entries for the above transactions and events. (b) Post to the accounts, Notes Payable, Interest Payable, and Interest Expense. (c) Show the balance sheet presentation of notes and interest payable at December 31.