Adjusting Entries for Interest The following note transactions occurred during the year for Towell Company: Nov. 25 Towell issued a 90-day, 9% note payable for $13,000 to Hyatt Company for merchandise. Dec. 7 Towell signed a 120-day, 10% note at the bank for $17,000. Dec. 22 Towell gave Barr, Inc., a 60-day, 10%, $17,000 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 Answer Answer

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

Dec.31 Answer Answer

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

Dec.31 Answer Answer

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To accrue interest expense for note on Dec. 22.