The January 1, Year 1 trial balance for the Duerr Company is found on the trial balance tab. The beginning balances are assumed. Lee Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.) 1 Year 20 Purchased $52,750 of merchandise on credit from Walker, terms n/30. Apr. May July Aug. Nov. Nov. Dec. Year 2 19 Replaced the April 20 account payable to Walker with a 90-day, 8%, $36,000 note payable along with paying $16,750 in cash. 8 Borrowed $84,000 cash from NJR Bank by signing a 120-day, 10%, $84,000 note payable. 17 Paid the amount due on the note to Walker at the maturity date. 5 Paid the amount due on the note to NOR Bank at the maturity date. 28 Borrowed $78,000 cash from Chicago Bank by signing a 60-day, 8%, $78,000 note payable. 31 Recorded an adjusting entry for accrued interest on the note to Chicago Bank. Jan. 27 Paid the amount due on the note to Chicago Bank at the maturity date. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Payables Interest Year 21 payment General Journal tab - Prepare the Year 1 journal entries related to the notes and accounts payable of Lee Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries, Verify that total interest expense agrees with the trial balance.