Answer and Explanation:
1.
Feb 2
Dr PURCHASES ($69,500 X 98%)$68,110
Cr ACCOUNTS PAYABLE $68,110
Feb 16
Dr ACCOUNTS PAYABLE $68,110
Dr PURCHASE DISCOUNTS LOST $1,390
Cr CASH $69,500
Dec 31
NO ADJUSTMENT NECESSARY
2.
April 1
Dr TRUCKS $50,000
Cr CASH $3,000
Cr NOTES PAYABLE $47,000
Dec 31
Dr INTEREST EXPENSE $4,230
Cr INTEREST PAYABLE $4,230
$47,000 PRINCIPAL X 12% INTEREST X 9/12 MONTHS = $4,230
3.
May 1
Dr CASH 88,300
Dr DISCOUNT ON NOTES PAYABLE $9,840
CrNOTES PAYABLE $98,140
Dec 31
Dr INTEREST EXPENSE $6,560
Cr DISCOUNT ON NOTES PAYABLE $6,560
$9,840 DISCOUNT X 8/12 MONTHS (STRAIGHT-LINE) = $6,560
