Provide the journal entries needed for each of the following situations:

a. Ajax Ltd. borrows $100,000 from its bank. The bank deposits the money in Ajax’s bank account.

b. Arborg Inc. arranges a $1,000,000 mortgage on its new office building. The lender pays the money directly to the seller of the building. The first payment on the mortgage is $5,535, of which $3,750 is for interest.

c. Barrhead Corp. borrowed $250,000 in the short-term market. Two days later the company repaid $250,070 to the lender.