The following selected transactions and events of Moonlight Co were completed during the accounting year just ended, December 31, 2015. Interest rates reflect market rates unless indicated. a. On June 1, 2015 the company borrowed $55 000 in cash from the bank on a demand basis. The interest rate was 6%, to be paid on the anniversary date of the loan. b. Merchandise was purchased on account; a $30,000, one-year, 7% interest-bearing note, dated 1 April 2015, was given to the supplier. Interest is paid when the amount is due on 1 April 2016. c. Merchandise was purchased on account; a two-year, $16,000, 1% note dated 1 February 2015 was given to the supplier. Interest is due annually on 1 February. The going interest rate for this term and risk was 7%. Use the gross method to record the note payable. d. A supplier delivered goods on account costing Canadian dollar 20,000. The exchange rate was Cnd1 = USDO,98 at that time. e. Moonlight has been sued by a customer for $500,000. The legal team confidently believes that there is an 80% chance that Moonlight will successfully defend itself. f. New legislative requirements came into force at the beginning of this year regarding environmental remediation. Moonlight believes that it will have to pay $80,000 in eight years' time when the company dismantles the oil drilling platform. The going interest rate for this term and risk was 7%. g. Payroll records showed the following. Amounts are unpaid: Employee Gross wages Income tax FICA Medicare Union dues 120,000 32,000 6,100 5,500 2,500 h. Cash dividends declared but not yet been paid were 22,500. i Accrue appropriate interest as December 31, and adjust the foreign-denominated payable to the year-end rate, Cnd1=USD0,96 Required. 1. Prepare the entries for each of the above transactions and events, if needed. 2. Prepare a list(title and amount) of the liabilities of Moonlight at December 31,2015.

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