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

Nov. 25 Zuber issued a 120-day, 12 percent note payable for $8,000 to Porter Company for merchandise.

Dec. 10 Zuber signed a 120-day, $7,200 note at the bank at ten percent.

Dec. 23 Zuber gave Dale, Inc., a $9,000, eight percent, 60-day note in payment of account.

Prepare the journal entries necessary to adjust the interest accounts at December 31. Please also explain the equation process as well.