The January 1, Year 1 trial balance for the Clark Company is found on the trial balance tab. The beginning balances are assumed. Sanchez Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.) Year 1 April 20 Purchased $41,750 of merchandise on credit from Taylor, terms n/30. May 19 Replaced the April 20 account payable to Taylor with a 90-day, 10%, $38,000 note payable along with paying $3,750 in cash. July Borrowed $90,000 cash from NYR Bank by signing a 120-day, 9, $90,000 note payable. August 17 Paid the amount due on the note to Taylor at the maturity date. November 5 Paid the amount due on the note to NYR Bank at the maturity date. November 28 Borrowed $51,000 cash from Albany Bank by signing a 60-day, 8, $51,000 note, payable. December 31 Recorded an adjusting entry for accrued interest on the note to Albany Bank. Year 2 January 27 Paid the amount due on the note to Albany Bank at the maturity date. Answer is not complete. General Requirement Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 21 payment Prepare the journal entries related to notes and accounts payable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. No. 1 Date April 20 Account Title Merchandise inventory Accounts payable-Taylor 2 May 19 Accounts payable-Taylor Notes payable-Taylor Cash 3 July 08 Cash 4 August 17 5 November 05 Notes payable-NYR Bank Notes payable-Taylor Interest expense Cash Notes payable-NYR Bank Interest expense Cash 6 November 28 Cash Notes payable-Albany 7 December 31 Interest expense Interest payable 00 00 000 000 00 000 00 Debit Credit 41,750 41,750 41,750 38,000 3,750 90,000 90,000 37,906 1,044 38,950