March30- Loaned an officer of the company 20000 and received a note requiring principle and interest at 7% to be paid on March 30, 2011.
May 30- Discounted the $20,000 not at a local bank. The bank discount rate is 8% . The not was discounted without recourse.
Jun 30 - Sold merchandise to the Blankership Company for $12,000. Term of the 2/10, n/30.
Aug 31- Sold stock in a nonpublic company with a book value of $5,000 and accepted a 6,000 noninterest-bearing note with a discount rate at 8%. The 6,000 payment is due on February 28,2011. The stock has no ready market value.
Dec 31 - Bad debt expense is estimated to be 2% of credit sales for the year. Credit sales for 2010 were $700,000.
1. Prepare journal entries for each of the above transactions.
2. Prepare any additional year-end adjusting