These are selected transactions of Sheridan Company. Sheridan prepares financial statements quarterly. Jan. 2 Purchased merchandise on account from Nunez Company, $35,000, terms 2/10, n/30. (Sheridan uses the perpetual inventory system.) Feb. 1 Issued a 9%, 2-month, $35,000 note to Nunez in payment of account. Mar. 31 Accrued interest for 2 months on Nunez note. Apr. 1 Paid face value and interest on Nunez note. July 1 Sept. 50 30 Purchased equipment from Marson Equipment paying $13,000 in cash and signing a 10%, 3-month, $60,000 note. Accrued interest for 3 months on Marson note. Oct. 1 Paid face value and interest on Marson note. Dec. 1 Borrowed $34,800 from the Paola Bank by issuing a 3-month, 8% note with a face value of $34,800. Dec. 31 Recognized interest expense for 1 month on Paola Bank note.