These are selected transactions of Waterway Company. Waterway prepares financial statements quarterly, Jan 2 Feb. 1 Mar 31 Apr 1 Purchased merchandise on account from Nunez Company, $42,000, terms 3/10, 1/30. (Waterway uses the perpetual inventory system) Issued a 9%, 2-month, $42.000 note to Nunez in payment of account.. Accrued interest for 2 months on Nunez note. Paid face value and interest on Nunez note. Purchased equipment from Marson Equipment paying $12,500 in cash and signing a 10%, 3-month, $57,600 note, Accrued interest for 3 months on Marson note. Paid face value and interest on Marson note. Borrowed $19.200 from the Paola Bank by Issuing a 3-month, 8% note with a face value of $19,200. Recognized interest expense for 1 month on Paola Bank note. July 1 Sept. 30 Oct. 1 Dec 1 Dec 31 Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Post entries in the order of jo the previous part.) Notes Payable 4/1 42,000 2/1 10/1 V 57.6000 7/1 12/1 12/31 Bal. Interest Payable 4/1 3/31 10/1 9/30 12/31 12/31 Bal. 12/31 12/31 Bal. Interest Expense