Adjusting Entries for Interest The following note transactions occurred during the year for Towell Company: Towell issued a 90-day, 9% note payable for $8,000 to Hyatt Company for Oct. 25 merchandise. Nov. 7 Towell signed a 120-day, 10% note at the bank for $12,000. Dec. 22 Towell gave Barr, Inc., a 60-day, 10%, $16,000 note for payment of account. 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. General Journal Date Description Debit Credit Dec.31 Interest Expense 0 0 Interest Payable 0 0 To accrue interest expense for note issued on Oct. 25. Dec.31 Interest Expense 0 Interest Payable 0 To accrue interest expense for note signed on Nov. 7. Dec.31 Interest Expense Interest Payable 0 0 To accrue interest expense for note on Dec. 22. 0