& Business Course !! My Subscriptions Adjusting Entries for Interest At December 31, 2017, Eric...
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& Business Course !! My Subscriptions Adjusting Entries for Interest At December 31, 2017, Eric Corporation had two 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: Date of note Principal Amount Interest Rate Number of Days December 31, 2017 Note 1 11/16/2017 $30,000 896 Note 2 12/4/2017 December 31, 2018 Note 3 12/7/2018 Note 4 12/21/2018 18,000 16.000 9,000 Required a. Prepare the adjusting entries for interest at December 31, 2017 b. 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 c. Prepare the adjusting entries for interest at December 31, 2018. Round answers to nearest dollar. Use 360 days for interest calculations when applicable. General Journal Date Description Credit Debit Dec.31 Interest Expense Interest Payable To record interest on note 1: Dec 31 Interest Expense
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