Adjusting Entries for Interest

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

Nov. $25$ Towell issued a $90-$day, $10\%$ note payable for $$9,000$ to Hyatt Company for merchandise.

Dec. $7$ Towell signed a $120-$day, $11\%$ note at the bank for $$13,000.$

Dec. $22$ Towell gave Barr, Inc., a $60-$day, $12\%,$ $$13,000$ 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$\mathrm{.}31$ Answer

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To accrue interest expense for note issued on Nov. $25.$

Dec$\mathrm{.}31$ Answer

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To accrue interest expense for note signed on Dec. $7.$

Dec$\mathrm{.}31$ Answer

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To accrue interest expense for note on Dec. $22.$