The January 1, Year 1 trial balance for the Carter Company is found on the trial balance tab. The beginning balances are assumed. Gonzalez Company entered into the following transactions Involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $49,750 of merchandise on credit from Nguyen, terms n/30. May 19 Replaced the April 20 account payable to Nguyen with a 90-day, 8%, $38,000 note payable along with paying $11,750 in cash. July 8 Borrowed $182,000 cash from NMR Bank by signing a 120-day, 18%, $102,000 note payable. August 17 Paid the amount due on the note to Nguyen at the maturity date. November 5 Paid the amount due on the note to NMR Bank at the maturity date. November 28 Borrowed $60,000 cash from Chicago Bank by signing a 60-day, 6%, $60,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Chicago Bank. Year 2 January 27 Paid the amount due on the note to Chicago Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Payables Calculation of Interest Year 2 payment Prepare the January 27, Year 2 journal entry to record the payment of the Chicago note at maturity. Carter Company does NOT prepare reversing entries. Date 1/27/Year 2 Account title 000: No journal entry required 101: Cash 103: Account receivable - Other 104: Accounts receivable - Chicago Debit Credit Year 2 payment > Gonzalez Company Calculation of interest expense August 17 - Nguyen note: Principal Interest rate Number of days' interest to be recorded in Year 1 Total interest expense-Year 1 $ 0 No Date 1 April 20 Merchandise inventory Accounts payable - Nguyen 2 May 19 Accounts payable - Nguyen Notes payable - Nguyen Cash Account Title Debit 49,750 Credit 49,750 49,750 38,000 11,750 3 July 08 Cash 102,000 Notes payable - NMR Bank 102,000 4 August 17 Notes payable - Nguyen 38,000 Interest expense 760 Cash 38,760 5 November 05 Notes payable - NMR Bank 0 102,000 Interest expense 3,400 Cash 105,400 6 November 28 Cash Notes payable - Chicago 7 December 31 Interest expense Interest payable 60,000 60,000 320 x 340X