2. Para Float Company often requires customers to sign promissory notes for major credit purchases. Journalize the following transactions for Para Float Company. Feb. 12 Accepted a $30,000, 4%, 60-day note from Yancy Blair for a 24-foot motorboat built to his specifications. April 14 Received notification from Yancy Blair that he was unable to honor his promissory note but that he expects to pay the amount owed in May. May 26 Received a check from Yancy Blair for the total amount owed. June 10 Received notification by the bank that Yancy Blair check was being returned "NSF" and that Mr. Blair had declared personal bankruptcy.

Lipman auto parts, a family-owned auto parts store, began january with $10,300.00 in cash. management forecasts that collections from credit customers will be $11,400.00 in january and $14,800.00 in february. the store is scheduled to receive $5,000.00 in cash on a business note receivable in january. projected cash payments include inventory purchases ($13,000.00 in january and $13,600.00 in february) and operating expenses ($2,700.00 each month). lipman auto parts' bank requires a $10,000.00 minimum balance in the store's checking account. at the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. lipman auto parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. the first payment occurs three months after the loan.