Problem - Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system.

1. On February 2, the corporation purchased goods from Martin Company for $70,600 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26.

2. On April 1, the corporation bought a truck for $55,000 from General Motors Company, paying $5,000 in cash and signing a one-year, 10% note for the balance of the purchase price.

3. On May 1, the corporation borrowed $114,000 from Chicago National Bank by signing a $123,840 zero-interest-bearing note due one year from May 1.

4. On August 1, the board of directors declared a $314,500 cash dividend that was payable on September 10 to stockholders of record on August 31.