The January 1, Year 1 trial balance for the Martin Company is found on the trial balance tab. The beginning balances are assumed Martin Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $45,750 of merchandise on credit from Smith, terms n/30. May 19 Replaced the April 20 account payable to Smith with a 90-day, 12%, $38,000 note payable along with paying $7,750 in cash. July B Borrowed $114,000 cash from NJR Bank by signing a 120-day, 6%, $114,000 note payable. August 17 Paid the amount due on the note to Smith at the maturity date. November 5 Paid the amount due on the note to NJR Bank at the maturity date. November 28 Borrowed $75,000 cash from Austin Bank by signing a 60-day, 12%, $75,000 note payable... December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. Year 2 January ?? Paid the amount due on the note to Austin Bank at the maturity date. < 1 2 3 4 5 6 7 April 20. Purchased $45,750 of merchandise on credit from Smith, terms n/30. Note: Enter debits before credits. Date April 20 Account Title Debit Credit Merchandise inventory 45,750 Accounts payable - Smith 45,750 > < 2 3 4 5 6 7 May 19. Replaced the April 20 account payable to Smith with a 90-day, 12%, $38,000 note payable along with paying $7,750 in cash. Note: Enter debits before credits. Date Account Title Debit Credit May 19 Accounts payable - Smith 45,750 Notes payable - Smith 38,000 Cash 7,750 > View transaction list Journal entry worksheet > 2 3 5 6 7 July 8. Borrowed $114,000 cash from NJR Bank by signing a 120-day, 6%, $114,000 note payable. Note: Enter debits before credits. Account Title Debit Credit 114,000 114,000 Date July 08 Cash Notes payable NJR Bank > Journal entry worksheet < 2 3 5 6 7 August 17. Paid the amount due on the note to Smith at the maturity date. Note: Enter debits before credits. Date August 17 Account Title Debit Credit Notes payable - Smith 38,000 Interest expense 12 Cash 38,000 Record entry Clear entry View general journal > Journal entry worksheet < 2 3 5 6 7 November 5. Paid the amount due on the note to NJR Bank at the maturity date. Note: Enter debits before credits. Date November 05 Account Title Debit Credit Journal entry worksheet < 1 2 3 5 7 November 28. Borrowed $75,000 cash from Austin Bank by signing a 60-day, 12%, $75,000 note payable. Note: Enter debits before credits. Date November 28 Account Title Debit Credit Journal entry worksheet < 1 2 3 5 9 7 December 31 Recorded an adjusting entry for accrued interest on the note to Austin Bank. Note: Enter debits before credits. Date December 31 Account Title Debit Credit Record entry Clear entry View general journal