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The Adjusto Corporation (which is on a December 31 fiscal year-end) engaged in the following transactions during 2007 and 2008:2007
Nov. 1 Issued a 120-day, 12% note, face value of $15,000, to Johnson Company to settle an open account of that amount
Dec. 1 Issued a 90-day, 12% note, face value of $22,000, to Winslow Corporation for the purchase of merchandise (the perpetual inventory method is used)2008
Mar. 1 Paid the principal and interest on both the Johnson and the Winslow notes
Required
Prepare journal entries to record the preceding transactions on Adjusto's books, including the adjusting entries at the end of 2007.
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