Jan.		2		Purchased merchandise on account from Nunez Company, $20,000, terms 3/10, n/30. (Lily uses the perpetual inventory system.)
Feb.		1		Issued a 9%, 2-month, $20,000 note to Nunez in payment of account.
Mar.		31		Accrued interest for 2 months on Nunez note.
Apr.		1		Paid face value and interest on Nunez note.
July		1		Purchased equipment from Marson Equipment paying $10,000 in cash and signing a 10%, 3-month, $63,600 note.
Sept.		30		Accrued interest for 3 months on Marson note.
Oct.		1		Paid face value and interest on Marson note.
Dec.		1		Borrowed $22,800 from the Paola Bank by issuing a 3-month, 8% note with a face value of $22,800.
Dec.		31		Recognized interest expense for 1 month on Paola Bank note.