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: Principal Amount interest Rate Number of Days Date of note December 31, 2011 Note 1 Novemer 16, 2011 Note 2 December 04, 2011 December 31, 2012 Note 3 December 07, 2012 Note 4 December 21, 2012 $120,000 160,000 10% 8% 90,000 180,000 9% 10% 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 Debit Credit Dec 31 To record interest on note 1. Dec.31 To accrue interest on note 2. b. Feb.2 Notes Payable Interest Expense To record payment of Note 2. Mar. 15 Notes Payable Interest Expense To record payment of Note 1. Dec.31 To record interest on Note 3. Dec.31 To record interest on Note 4