Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during 2019

Question:

Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during 2019 and 2020:
2019
Nov. 1 Issued a 120-day, 12% note, face value of $20,000, to Johnson Company to settle an open account of that amount.
Dec. 1 Issued a 90-day, 12% note, face value of $32,000, to Winslow Corporation for the purchase of merchandise (the perpetual inventory method is used).
2020
Mar. 1 Paid the principal and interest on both the Johnson and the Winslow notes.

Required:
Prepare journal entries to record the preceding transactions on Adjusto’s books, including the adjusting entries at the end of 2019. Assume a 360-day year.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...

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