Purchased merchandise on account from Yokum Company, $30,000, terms 2/10, n/30.
Issued a 9%, 2-month, $30,000 note to Yokum in payment of account.
Accrued interest for 2 months on Yokum note.
Paid face value and interest on Yokum note.
Purchased equipment from Korsak Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note.
Accrued interest for 3 months on Korsak note.
Paid face value and interest on Korsak note.
Borrowed $15,000 from the Otago Bank by issuing a 3-month, 8% note with a face value of $15,000.
Recognized interest expense for 1 mont