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At December 31, 2011, Hoffman Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2012, Hoffman also had two notes payable

At December 31, 2011, Hoffman Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2012, Hoffman also had two notes payable outstanding (notes 3 and 4). These notes are described below:

Date of note Principal Amount Interest Rate Number of Days
December 31, 2011
Note 1 Novemer 16, 2011 $120,000 10% 120
Note 2 December 04, 2011 160,000 8% 60
December 31, 2012
Note 3 December 07, 2012 90,000 9% 60
Note 4 December 21, 2012 180,000 10% 30

Required a. Prepare the adjusting entries for interest at December 31, 2011. b. Assume that the adjusting entries were made at December 31, 2011. Prepare the 2012 journal entries to record payment of the notes that were outstanding at December 31, 2011. c. Prepare the adjusting entries for interest at December 31, 2012. Round answers to nearest dollar. Use 360 days for interest calculations when applicable.

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