Entries for and Financial Statement Presentation of a Note Griddley Company borrowed $71,000 from the East Salvador Bank on February 1, 2023, on a 3-year, 7.2% note. Interest is paid annually on January 31.

2. Prepare the adjusting entries made at December 31, 2023 and 2024.

2023 Dec. 31 Interest Expense _____________

Interest Payable _____________

Record Interest Expense

2024 Dec. 31 Interest Expense _____________

Interest Payable _____________

Record Interest Expense

3. Prepare the necessary journal entry to recognize the first interest payment on January 31, 2024.

2024 Jan. 31 Interest Expense ______________

Interest Payable ______________

Cash ______________

Record Interest expense and interest payment