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Goodie Company, whose year-end is December 31, entered into the following transactions relating to notes payable during 2020:
Nov.15 Purchased inventory costing $60,000 from Crystal Company by paying $15,000 cash and the remainder by signing a 60-day, 6% note payable.
Dec. 1 Purchased additional inventory costing $30,000 from Crystal Company by signing a 120-day, 7% note payable.
Dec. 13 Issued a 180-day, $20,000 note payable to the bank at 7.5%.
(Use 360 days to calculate the interest expense)
Required:
(a) Prepare adjusting entries in general journal format related to interest expense of the
Nov. 15 note as of December 31, 2020.
(b) Prepare adjusting entries in general journal format related to interest expense of the
Dec. 1 note as of December 31, 2020.
(c) Prepare adjusting entries in general journal format related to interest expense of the
Dec. 13 note as of December 31, 2020.
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