Assuming Company X has a December 31 year end.How would you list the adjusting entries needed for the accrual of interest on the following transactions relating to notes payable?

 

Sept. 1  Purchased inventory costing $48,000 by signing an 8-month, 6% note payable.

Nov. 1   Purchased inventory costing $30,000 by signing a 1-year, 7% note payable.

 

For ease of computation lets say that Company X calculates interest expense based on the number of months outstanding, rather than the number of days.