Help exercise 1 & 2

Chapter Eleven - Manual Homework Exereise 1. Rob Johnsan Company had the following transactions involving Notes Payatile July 1, 2001 Borrowed 550,000 from the Third National Bank by signing a 9 -month, 4th note. Aug.1, 20x1 Signed a.2-month 6% Note Payable for 520,000 to Stewart Compary for an eaisting Account Payable. Oet 1,20x] Paid the principal and ioterest on the note to Stewart company. Nov. 1, 20x1 Borrowed 580,000 from Cooper Bank by signing a 3-month Fh note: Deci: 31, 20x1 Prepared Adjisting foumal Entries for calendar vear. Fob. 1,20x2 Paid the principal and interest on the Cooper Bank note April 1, 20x2 Paid the interest to Third National Bank on the Note and then signed a new 6 -month 12% note for the principal (compound entry). Why would the interest rate on the new Note be so inoch higher than on the first note? a) Prepsre the journal entries for these transactions. b c) If these are the only notes that the company has signed, what should be the amount shown on the Dec.31 Balance Sheet in the Long-Term Liability section for Notes Payable? Exercise 2. Miller Company has a Mortgage Note Payable (Installment Note) of $350,000 on December 31, 201. During 20x2, the amount of principle due to be paid on the Mortgage is $23,000. a) What should be the amount shown on the Dec.31, 20x1 Balance Sheet in the Current Liability section for Notes Payable? b) If this is the only note that the company has signed, what should be the amount shown on the Dec.31 Balance Sheet in the Long-Term Liability section for Mortgage Notes Payable