Interest Payable—Quarterly Adjustments Glendive takes out a 12%, 90-day, $100,000 loan with Second State Bank on March 1, 2010. Assume that Glendive prepares adjustments only four times a year: on March 31, June 30, September 30, and December 31.

Required 1. Identify and analyze the transaction to take out the loan on March 1, 2010.

2. Identify and analyze the adjustment on March 31, 2010.

3. Identify and analyze the transaction on May 30, 2010, when Glendive repays the principal and interest to Second State Bank.

AppendixLO1