The following transactions apply to Walnut Enterprises for 2016, its first year of operations:

1.	Received $42,000 cash from the issue of a short-term note with a 4 percent interest rate and a one-year maturity. The note was made on April 1, 2016.
2.	Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent.
3.	Paid $71,500 cash for other operating expenses during the year.
4.	Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until 2017.
5.	Recognized the accrued interest at December 31, 2016.

The following transactions apply to Walnut Enterprises for 2017:

1.	Paid the balance of the sales tax due for 2016.
2.	Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent.
3.	Repaid the principal of the note and applicable interest on April 1, 2017.
4.	Paid $84,500 of other operating expenses during the year.
5.	Paid the sales tax due on $117,000 of the service revenue. The sales tax on the balance of the revenue is not due until 2018.

Event	General Journal	Debit	Credit
1	Cash	42,000
	Notes payable		42,000
2	Cash
	Service revenue
	Sales tax payable
3	Operating expenses
	Cash
4	Sales tax payable
	Cash
5	Interest expense
	Interest payable