Prepare a general journal using Excel with 4 columns with the following titles: # transaction, Accounts, DR (debit) and CR (credit).

Prepare the journal entry for the transactions or settings listed below. If a journal entry is not required, type DOES NOT APPLY. Upon completion of this project, any additional assumptions that have been made must be included in the explanation of the journal entry.

TRANSACTIONS (Setly present before each entry or journal entry any assumption that you have made applicable to the journal entry)

1. Adjustment required on 12/31/2021 related to the purchase on credit of November 1, 2020.

2. Adjustment entry on 12/31/2021 related to the loan of November 30, 2021.

3. Daily entry due to the demand of the former employee.

4. Adjustment required on 12/31/21 related to the promissory note of January 1, 2021.

5. Adjustment required on 12/31/21 related to bonds issued on December 1, 2021

6. Journal entry to register the issuance of the bond on December 31, 2011.

7. Journal entry for the lawsuit against the competitor

Here are some events that could affect LTY, Inc.'s 2021 financial statements:

1. On November 1, 2021, LTY acquired 2,000 units of inventory on credit at $500 each. The terms of the invoice were 2/10, n/90. On November 9, 2021, he paid 20% of the debt. On January 20, 2022, LTY agreed with the supplier to pay half of the balance due in cash and the other half with common shares of the company. The shares have an even value of $1.

2. On November 30, 2021, he received $32,000 from the People's Bank in exchange for signing a 3-month promissory note for $35,000 without stipulated interest.

3. On February 15, 2021, LTY received notification that a former employee is sued to the company for unjustified dismissal. The dismissal occurred on December 21, 2020. The company's legal advisors inform you that the former employee is likely to win the case, so they recommend reaching an agreement as soon as possible to avoid too much negative press. The amount payable is estimated to be between $700,000 and one million.

4. On January 1, 2020, LTY issued a three-year promissory note payable, with a stipulated annual interest rate of 8% and a principal value of $30,000 in exchange for a team. The market value of the equipment and the document could not be determined at the time of the transaction. However, the equipment had a value in the seller's books of $12,000. The company charged an interest rate of 12% to the loan.

5. On December 1, 2020, LTY issued bonds with a maturity value of $100,000 and an established interest of 10% at their equal value plus accumulated interest. The bonds were originally dated November 1, 2020 and expire on November 1, 2025 with interest payable on November 1 and May 1.

6. On December 31, 2020, the LTY corporation issued $100,000 in bonds at 12%, for 5

Years. Bonds pay interest every six months on July 1 and January 1. The present value of the bonds at the time of issue was $86,580. In addition, the company incurred $5,000 bond issuance costs. The effective market rate was 16%.

7. On January 5, 2021, LTY learned that one of its competitors is selling a product in which LTY has exclusive rights to sell. LTY filed a lawsuit against the competitor and, in all likelihood, his lawyers considered that he will be able to recover at least $1,500,000.