During $2024,$ Pearl Co$.$ borrowed cash from Pronghorn Company by issuing notes payable as follows:

June $1,2024,$ issued an eight$-$month, $7\%$ note for $$86,400.$ Interest and principal are payable at maturity.

October $1,2024,$ issued a three$-$month, $5\%$ note for $$31,200.$ Interest is payable monthly on the first day of the month.

Principal is payable at maturity

Pearl has a November $30$ fiscal year end and prepares adjusting entries on an annual basis.

$($a$)$

Your answer is correct.

Prepare all necessary journal entries for Pearl to record the notes. $($Credit account titles are automatically indented when amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Record journal

entries in the order presented in the problem. List all debit entries before credit entries.$)$

$($b$)$

Prepare all necessary interest payment transactions for Pearl in $2024$ and $2025.$ Prepare separate adjusting entries for each note.

$($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry"

for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

$($To accrue interest on note issued June $1,2024.)$

$($To accrue interest on note issued Oct. $1,2024.)$

$($Pay interest owed on note issued Oct. $1,2024.)$

$($Pay principal and interest on note issued Oct. $1,2024.$

$($Pay principal and interest on note issued June $1,2024.)$

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