Adjusting Entries for Interest The following note transactions occurred during the year for Towell Company:

Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar.

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Nov. 19 Towell issued a 90-day, 9% note payable for $8,000 to Hyatt Company for merchandise Dec. 1 Towell signed a 120-day, 10% note atthe bank for $12,000. Dec. 19 Towell gave Barr, Inc., a 60-day, 10%, $12,000 note for payment of account