During 2021, Wildhorse Co. borrowed cash from Sandhill Co. by issuing notes payable as follows: 1. June 1, 2021, issued an eight-month, 3% note for $72,000. Interest and principal are payable at maturity. 2. October 1, 2021, issued a three-month, 5% note for $42.000. Interest is payable monthly on the first day of the month. Principal is payable at maturity. Wildhorse Co. has a November 30 fiscal year end and prepares adjusting entries on an annual basis.