Lockett Corp. supported its operations through short-term note financing in 2020 described as follows:

May 10 The Company entered into a new credit agreement with certain financial institutions providing for revolving credit borrowings and letters of credit in an aggregate amount not to exceed $3.5 million. Interest rates are adjustable.

Sept. 30 The Company borrowed $1,150,000, payable in 6 months, at an interest rate of 7.25%, due upon maturity.

Nov. 30 Additional cash needed during peak holiday sale period was funded through the issuance of 60-day, $460,000 commercial paper, discounted at 4%.

Jan. 29 Paid off the commercial paper debt on due date.

Mar. 31 Paid off the balance of $1,150,000 on the revolving credit line plus interest.

Required: (Show all your calculations)

1. Record all the necessary journal entries. The company has a December 31st as fiscal year end.