Adjusting Entries for Interest At December 31, 2011, Hoffman Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2012, Hoffman 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, 2011
Note 1	Novemer 16, 2011	$14,000	8%	120
Note 2	December 04, 2011	18,000	9%	60
December 31, 2012
Note 3	December 07, 2012	11,000	9%	60
Note 4	December 21, 2012	20,000	10%	30

Required a. Prepare the adjusting entries for interest at December 31, 2011. b. Assume that the adjusting entries were made at December 31, 2011. Prepare the 2012 journal entries to record payment of the notes that were outstanding at December 31, 2011. c. Prepare the adjusting entries for interest at December 31, 2012. Round answers to nearest dollar. Use 360 days for interest calculations when applicable.

General Journal Date Description Dec 3 Interest Expense Interest Payabie To record interest on note Dec 3 Interest Expense Interest Payabie Feb2 Noes Payable Incerest Paeyable Interest Expense To record payment of Noto 2 Mar.15 Notes Payable Incerest Payable Incera Expanse To record payment of Note1 Dec 31 Interest Expense Interest Payable To record intarest on Note 3 Dec 31 Interest Expense Interest Payable To record intarest on Note 4