Problem 9-92A (Algorithmic) Entries for and Financial Statement Presentation of a Note perez Company borrowed $61,000 from the First National Bank on June 1, 2019, on a 3-year, 8.7% note. Interest is paid annually on May 31 If required, round amounts to the nearest dollar. Required: 1. Record the borrowing transaction in Perez's journal. 2019, June 1 Cash Notes Payable Record issuance of note at par Feedback Check My Work 1. When bonds are issued, any premium or discount is recorded in a separate valuation account 2. Prepare the adjusting entries made at December 31, 2019 and 2020. 2019, December 31 Interest Expense Interest Payable Record interest expense Interest Expense Interest Payable Record interest expense 2020, December 31 Feedback Cheak My Work 3. Prepare the necessary journal entry to recognize the first interest payment on May 31, 2020. 2020, May 31 Interest Expense Interest Payable V Cash Record interest expense and payment of interest Feedback 4. Indicate how the note and associated interest would be presented in Perez's December 31, 2020 balance sheet. Perez Company Balance Sheet (partial) December 31, 2020 Current labilities: Interest payable Long-term liabilities: Notes payable, 8.7%, due in 2022 y 1. Feedback Check My Work 4. Discount and premium accounts are valuation accounts 5. Prepare the necessary journal entries to record the repayment of the note and the last year's interest on May 31, 2022. Interest Expense v Interest Payable V Cash Record interest expense and payment of interest 2022, May 31 2022, May 31 Notes Payable Cash Record repayment of note principal