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Adjusting entries for interest

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Problem: Adjusting entries for interest: At December 31, 2017, Eric Corporation had tow notes payable outstanding (notes 1 and 2). At December 31, 2018, Eric also had two notes payable outstanding (notes 3 and 4). These notes are described below:

DECEMBER 31, 2017 Date of note Principal Amount Interest Rate Number of days

note 1...............................11/16/2017 $30,000 8% 120

note 2...............................12/4/2017 16,000 9 60

DECEMBER 31,2018

note 3..............................12/7.2018 9,000 10 60

note 4...............................12/21/2018 18,000 12 30

Required

Question 1: Prepare the adjusting entries for interest at December 31,2017

Question 2: Assume that the adjusting entries were made at December 31,2017. Prepare the 2018 journal entries to record payment of the notes that were outstanding at December 31, 2017.

Question 3: Prepare the adjusting entries for interest at December 31, 2018.

Reference no: EM132419233

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