[lilyrose]

1. On feb 2, the corporation purchased goods from jack haley co. for $50,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on Feb 26.
2. On April 1, the corp bought a truck for $40,000 from general motors co, paying $4,000 in cash and signing a one year 12% note for the balance of the purchase price.
3. On may 1, the corp borrowed $80,000 from chicago national bank by signing a $92,000 non interest bearing note due one year from may 1.
4. on aug 1, the board of directors declared a $300,000 cash dividend that was payable on sept 10 to stockholders of record on aug 31.
Instructions:
a) make all the journal entries necessary to record the transactions above by using the appropriate dates.
b) James edwards corp's year end is dec 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at dec 31. Assume straight-line amortization of discounts.