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Described below are certain transactions of Sandhill Corporation. The company uses the periodic inventory system.

On February $2,$ the corporation purchased goods from Martinez Company for $$73,500$ subject to cash discount terms

of $\frac{2}{10},\frac{n}{30}.$ Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The

invoice was paid on February $26.$

On April $1,$ the corporation bought a truck for $$55,000$ from Blossom Motors Company, paying $$3,000$ in cash and signing a $1-$

year, $12\%$ note for the balance of the purchase price.

On May $1,$ the corporation borrowed $$86,000$ from Chicago National Bank by signing a $$94,640$ zero$-$interest$-$bearing note

due $1$ year from May $1.$

$($a$)$

Your answer is correct.

Make all the journal entries necessary to record the transactions above using appropriate dates. $($If no entry is required, select $"$No

Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not

indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem. List all debit entries

before credit entries.$)$

$($b$)$

Sandhill Corporation's year$-$end is December $31.$ 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

December $31.$ Assume straight$-$line amortization of discounts. $($If no entry is required, select $"$No Entry" for the account titles and enter

ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries

before credit entries.$)$

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