The following are selected transactions of Eldorado Company, which prepares financial statements quarterly:

Jan. 2 Purchased merchandise on account from McCoy Company, \(\$ 15,000\), terms \(2 / 10, \mathrm{n} / 30\).

Feb. 1 Issued a \(10 \%, 2\)-month, \(\$ 15,000\) note to McCoy in payment of account.

Mar. 31 Accrued interest for 2 months on McCoy note Apr. 1 Paid face value and interest on McCoy note.

July 1 Purchased equipment from Scottie Equipment, paying \(\$ 11,000\) in cash and signing a \(10 \%, 3\)-month, \(\$ 24,000\) note.

Sept. 30 Accrued interest for 3 months on Scottie note.

Oct. 1 Paid face value and interest on Scottie note.

Dec. 1 Borrowed \(\$ 10,000\) from Federation Bank by issuing a 3-month, \(9 \%\) interest-bearing note with a face value of \(\$ 10,000\).

31 Recognized interest expense for 1 month on Federation Bank note.

\section*{Instructions}

(a) Prepare journal entries for the transactions and events.

(b) Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (Use \(\mathrm{T}\) accounts.)

(c) Show the balance sheet presentation of notes payable and interest payable at December 31 .

(d) What is the total interest expense for the year?