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

Nov.	10	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 at the bank for $12,000.
Dec.	20	Towell gave Barr, Inc., a 60-day, 10%, $12,000 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 PayableInterest Expense
	Interest PayableInterest Expense
	To accrue interest expense for note issued on Nov. 10.
Dec.31	Interest PayableInterest Expense
	Interest PayableInterest Expense
	To accrue interest expense for note signed on Dec. 1.
Dec.31	Interest PayableInterest Expense
	Interest PayableInterest Expense
	To accrue interest expense for note on Dec. 20.

Can someone please EXPLAIN how to do this? I am so confused.

Adjusting Entries for Interest The following note transactions occurred during the year for Towell Company: Nov. 10 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 at the bank for $12,000. Dec. 20 Towell gave Barr, Inc., a 60-day, 10%, $12,000 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 72 x 0 Interest Payable 0 72 x To accrue interest expense for note issued on Nov. 10. Dec.31 Interest Expense 80 x 0 Interest Payable 0 80 x To accrue interest expense for note signed on Dec. 1. Dec.31 Interest Expense 30 X 0 Interest Payable 0 30 x To accrue interest expense for note on Dec. 20. Check