The following transactions relate to Kern Company: 2007 Jan. I Purchased a machine from Jack Deere Inc., by signing a $60,000, 5 year note payable plus interest @ 8% (per annum). Interest is payable cach December 31st. (Ignore GST and PST for this transaction). Oct.12 Gave Davies Company S2,500 cash and a $7,500, 90 day note payable plus interest @ 10% (per annum), to secure an extension of their past due account payable. Nov. 16 Borrowed $10,000 from the Bank of Nova Scotia by signing a S10,000, 60-day note payable plus interest @ 9% (per annum). Dec. 1 Entered into a contract to provide delivery services for a customer at $300 per month Received payment for the months of December, January and February. (Ignore GST and PST for this transaction). Dec. 18 Purchased inventory from CBC Limited by signing a 90 day, note payable plus interest @ 7% (per annum). The cost of the inventory purchased was $24,000 plus GST @ 6% Dec, 23 Sold merchandise on credit to John Doe, terms 2/10, n/30, in the amount of $25,000 plus GST @ 6% and PST @ 8%. The cost of the merchandise inventory sold was $15,000. Dec. 28 Recorded the information from the payroll journal for the month of December and recorded the employer's portion of the payroll deductions. (The last pay-date in December was December 28). Gross Wages $9256.00. CPP withheld $261.72 EI withheld $249.92 income Tax withheld $1960 Union Dues withheld 92.00. Net Pay 6692.36. Dec. 31 Paid the interest due on the note payable dated January 1, 2007. Dec. 31 Prepared all necessary year-end adjusting entries. 2008 Jan. 15 Issued a cheque to the Receiver General of Canada for remittance of the employee deductions. Jan. 15 Issued a cheque to the local union for the union dues withheld in December. Jan. 15 Issued a cheque to the Receiver General of Canada for remittance of the GST owing. Jan. 15 Issued a cheque to the Treasurer of Ontario for remittance of the PST owing. Paid the notes dated October 12, 2007, November 16, 2007 and December 18, 2007. (You will have to correctly date these journal entries!) Required: (1) Prepare journal entries to record all of the above transactions. Be sure to assign dates to all of the entries. (2) Prepare the "Current Liabilities" section of the Balance Sheet for Kern Company as at December 31, 2007.