The following are selected transactions of XYZ Company. XYZ prepares financial statements quarterly. Prepare Journal Entries for the listed transactions and events.

Jan. 2		Purchased merchandise on account from Ally Company, $33,075, terms 2/10, n/30. (Graves uses the perpetual inventory system.)
Feb. 1		Issued a 6%, 2-month, $33,075 note to Ally in payment of account.
Mar. 31		Accrued interest for 2 months on Ally note.
Apr. 1		Paid face value and interest on Ally note.
July 1		Purchased equipment from Clark Equipment paying $14,400 in cash and signing a 7%, 3-month, $37,960 note.
Sept. 30		Accrued interest for 3 months on Clark note.
Oct. 1		Paid face value and interest on Clark note.
Dec. 1		Borrowed $18,000 from the Jonas Bank by issuing a 3-month, 6% note with a face value of $18,000.
Dec. 31		Recognized interest expense for 1 month on Jonas Bank note.