Adjusting Entries for Interest At December 31, 2014, Portland Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2015, Portland 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, 2014 Note 1 11/25/2014 Note 2 12/16/2014 $35,000 8% 16.800 9 88 60 December 31, 2015 Note 3 12/11/2015 15,400 9 120 Note 4 12/7/2015 18,000 12 90 Required a. Prepare the adjusting entries for interest at December 31, 2014. b. Assume that the adjusting entries were made at December 31, 2014, and that no adjusting entries were made during 2015. Prepare the 2015 journal entries to record payment of the notes that were outstanding at December 31, 2014. c. Prepare the adjusting entries for interest at December 31, 2015. Round answers to nearest dollar. Use 360 days for interest calculations when applicable. Date a. Dec.31 General Journal Description Debit Credit 5 To record interest on note 1. Dec.31 = To accrue interest on note 2. 4. Feb.14 Notes Payable O Interest Expense = To record payment of Note 2. Business General Journal Date Description Debit Credit a. Dec.31 $ $ Dec.31 b. To record interest on note 1. To accrue interest on note 2. Feb.14 Notes Payable Interest Expense To record payment of Note 2. Feb.23 Notes Payable Interest Expense To record payment of Note 1. C. Dec.31 4 To record interest on Note 3. Dec.31 + + To record interest on Note 4