Your company, National Paper Supplies, frequently borrows money for short periods from First Bank by issuing promissory notes.

Instructions

In your working papers, record the following transactions on page 6 of the general journal.

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Date Jan. 15 Apr. 15 Oct. 31 Dec. 31 Transactions Borrowed $12,000 from First Bank by issuing a 90-day, non-interest- bearing note payable that the bank discounted at 12%, Note 45. Issued Check 2561 for $12,000 in payment of the note issued Jan.15 and recorded the interest expense. Borrowed $18,000 from First Bank by issuing a 120-day, non-interest- bearing note payable that the bank discounted at 13%, Note 16. Made an adjusting entry to record the accrued interest expense for Note 46 at year-end.