The following transactions of Billy Traders Ltd occurred during the current financial year:

Feb 20

Received a $6,000, 60 day, 10% promissory note from D. Cavaye in payment of account.

March 6

Wrote off the $300 account of M Voss, a customer, against the Allowance for Doubtful Debts account.

May 9

D. Cavaye paid the promissory note in full.

May 12

Sold merchandise worth $6,500 to Stallone ltd. & accepted a 90 day, 10% promissory note in full payment.

May 18

M. Voss paid account that had been written of on 6 March

June 11

Discounted the promissory note received form Stallone Ltd at the bank. The bank charged a discount fee of 12%.

June 16

Received an $8,000, 60 day, 8% promissory note from P. Kulp on account.

Required:

Record the above transactions of Billy Traders Ltd. in general journal form including any necessary adjusting entries for interest at 30 June.

Show your calculations clearly.