Question - Willingham Company had the following transactions involving notes payable.
Aug. 1, 2017 Borrows $200,000 from Fourth National Bank by signing a 9-month, 12% note.
Dec. 1, 2017 Borrows $120,000 from Arkansas State Bank by signing a 3-month, 10% note.
Dec. 31, 2017 Prepares adjusting entries.
March 1, 2018 Pays principal and interest to Arkansas State Bank.
May 1, 2018 Pays principal and interest to Fourth National Bank.
Instructions - Prepare journal entries for each of the transactions.