I am trying to respond to the question, where the rubric is telling me to "Use this information to calculate interest rates and insurance information, and to assess their impact on the company's financial obligations. I want you to thoroughly check the work that I performed and ensure that the step by step work that I carried out is accurate. After you have read what I have done below, what should I with the quantitative information that I have below to respond to the expectation, where it is instructing me to "Use this information to calculate interest rates and insurance information, and to assess their impact on the company's financial obligations"?

Reminder: $2,114.55 is the dollar amount associated with Prepaid Insurance, and the $5,000 is the dollar amount is affiliated with Notes Payable. Both Prepaid Insurance and Notes Payable is are located below in the Unadjusted Trial Balance for Peyton Approved.

Business-Financing Information:-Use this information to calculate interest rates and insurance information, and to assess their impact on the company's financial obligations: 6%-interest note payable was made on-Jan-31, 2017, and is due-Feb-1,-2019. * 5-year-loan was made on-June-1, 2016. Terms-are-7.5% annual rate, interest only until due date. I + Insurance: Annual policy covers-12-months, purchased-in-February, covering-March-2017- to February 2018. No monthly adjustments have been made. I PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Dr ref Unadjusted trial balance Cr 67,520.04 68,519.91 Ad Dr 1,00 70 3,00 15,506.70 1,238.07 20 Cash Accounts Receivable Other Receivable - Insurance Baking Supplies Merchandise Inventory Consignment Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Baking Equipment Accumulated Depreciation Customer Deposit Accounts Payable Wages Payable Interest Payable Notes Payable 2,114.55 2,114.55 170.49 14,000.00 1,606.44 1,20 20,262.11 3,383.28 211.46 5,000.00 50,144.84 327,322.55 1,205.64 Beginning Retained earnings Dividends 105,000.00 Bakery Sales Merchandise Sales Cost of Goods Sold - Baked 105,834.29 Cost of Goods Sold - Merchandise 859.77 Rent Expense 24,549.19 Wages Expense 10,670.72 Misc. Supplies Expense 3,000.46 Business License Expense 2,045.77 Misc. Expense 1,363.84 Depreciation Expense 677.86 Insurance Expense 1,091.08 Advertising Expense 1,549.74 Interest Expense 818.31 Telephone Expense 490.98 Gain/Loss on disposal of equipment 429,136.32 429,136.32 6%-interest-note payable was made on-Jan-31, 2017, and is due Feb 1, 2019.1 January, 31, 2017 + February 28, 2017 - March 31, 2017 - April 30, 2017 (1.) (2.) (3.). May 31, 2017 June 30, 2017+ July 31, 2017 August 31, 2017 (4.). (5.). -(6.) September 30, 2017+ October 31, 2017 + November 30, 2017 December 31, 2017 --(8.) (9.) -(10.) (11.). January 31, 2018 - February 28, 2018 - March 31, 2018 + April 30, 2018 ....(12.) (13.) - (14.) -- (15.) May 31, 2018+ June 30, 2018+ July 31, 2018+ August 31, 2018 11 months 12 months = $5,000 x 6% =-$5,000-x-0.061 = $3001 = $300 x 11 months 12 months =-$300-x-0.916666667 = $2757 1 +5-year-loan was made on June 1, 2016. Terms are-7.5% annual rate, interest only until-due- date. Since there is no account named-Loans Payable on the-Unadjusted Trial Balance of the Microsoft Office Excel-file-called-3-1.Final-Project-Milestone One Workbook-for-ACC-308- Intermediate Accounting 2, there is no need for me to count how many months there are until the maturity date arrives and calculate the additional Interest -expense and Interest payable. Adjusting Journal Entry for word problem associated with (6%-interest note payable was made on-Jan-31, 2017, and is due-Feb-1.-2019). --Adjusting Journal.Entry Date... ...Account Title Post. Ref.: Debit ---Credit Dec 31, 2016 Interest-expense (E+) --$2751 -Interest payable (L+)- $2751 -To-accrue interest expense. I --To record interest-accumulated-on-a-6% note payable issued on January 31, 2017.1 Insurance:-Annual policy covers 12 months, purchased in February, covering-March-2017 to February 2018. No monthly adjustments have been made. February 2, 2017 + March, 2017+ April-?-2017 May , 2017 June 7, 2017-1 (1.) (2.) (3.) (4.) July 2, 2017 August-2-2017 September 2, 2017 - October 2, 2017 (5.) (6) --- -(7.) (8.) November 2, 2017 - December 31, 2017 January 2, 2018 February 2, 20181 (10.)..... -0.) *Since-Peyton prepays 10 months prepaid insurance of on-March-2,-2017--from-March-2, 2017 to December 31, 2017 (10 months). Next, I must-look at the-Unadjusted Trial Balance lists-$2,114.55 as the dollar amount- representing the account called-Prepaid-Insurance, which can be found on the spreadsheet-called- Unadjusted Trial-Balance of the Microsoft Office Excel file called-3-1-FinalProject-Milestone One-Workbook for ACC 308-Intermediate Accounting 2. March 2, 2017---Prepaid-Insurance (A+).. $2,114.555 --Total number of months covered- --Number of months expired (used-up) -107 *No monthly adjustments have been made. -124 10 months = $2,114.55.x 12 months 1 = $2,114.55*0.83333 3333337 = $1,762.1251 1 Round to the nearest hundredth, so it is $1,762.13.1 1 = $1,762.131 1 --Adjusting Journal Entry Date Account Title Post.Ref..... -Debit....Credit Dec 31, 2017 ---Insurance expense (E+) $1,762.131 - Prepaid Insurance (A-) $1,762.131 --To record expiration of 10 months of insurance coverage purchased on February 2. 2017.1 Business-Financing Information:-Use this information to calculate interest rates and insurance information, and to assess their impact on the company's financial obligations: 6%-interest note payable was made on-Jan-31, 2017, and is due-Feb-1,-2019. * 5-year-loan was made on-June-1, 2016. Terms-are-7.5% annual rate, interest only until due date. I + Insurance: Annual policy covers-12-months, purchased-in-February, covering-March-2017- to February 2018. No monthly adjustments have been made. I PEYTON APPROVED TRIAL BALANCE As of December 31, 2017 Dr ref Unadjusted trial balance Cr 67,520.04 68,519.91 Ad Dr 1,00 70 3,00 15,506.70 1,238.07 20 Cash Accounts Receivable Other Receivable - Insurance Baking Supplies Merchandise Inventory Consignment Inventory Prepaid Rent Prepaid Insurance Misc. Supplies Baking Equipment Accumulated Depreciation Customer Deposit Accounts Payable Wages Payable Interest Payable Notes Payable 2,114.55 2,114.55 170.49 14,000.00 1,606.44 1,20 20,262.11 3,383.28 211.46 5,000.00 50,144.84 327,322.55 1,205.64 Beginning Retained earnings Dividends 105,000.00 Bakery Sales Merchandise Sales Cost of Goods Sold - Baked 105,834.29 Cost of Goods Sold - Merchandise 859.77 Rent Expense 24,549.19 Wages Expense 10,670.72 Misc. Supplies Expense 3,000.46 Business License Expense 2,045.77 Misc. Expense 1,363.84 Depreciation Expense 677.86 Insurance Expense 1,091.08 Advertising Expense 1,549.74 Interest Expense 818.31 Telephone Expense 490.98 Gain/Loss on disposal of equipment 429,136.32 429,136.32 6%-interest-note payable was made on-Jan-31, 2017, and is due Feb 1, 2019.1 January, 31, 2017 + February 28, 2017 - March 31, 2017 - April 30, 2017 (1.) (2.) (3.). May 31, 2017 June 30, 2017+ July 31, 2017 August 31, 2017 (4.). (5.). -(6.) September 30, 2017+ October 31, 2017 + November 30, 2017 December 31, 2017 --(8.) (9.) -(10.) (11.). January 31, 2018 - February 28, 2018 - March 31, 2018 + April 30, 2018 ....(12.) (13.) - (14.) -- (15.) May 31, 2018+ June 30, 2018+ July 31, 2018+ August 31, 2018 11 months 12 months = $5,000 x 6% =-$5,000-x-0.061 = $3001 = $300 x 11 months 12 months =-$300-x-0.916666667 = $2757 1 +5-year-loan was made on June 1, 2016. Terms are-7.5% annual rate, interest only until-due- date. Since there is no account named-Loans Payable on the-Unadjusted Trial Balance of the Microsoft Office Excel-file-called-3-1.Final-Project-Milestone One Workbook-for-ACC-308- Intermediate Accounting 2, there is no need for me to count how many months there are until the maturity date arrives and calculate the additional Interest -expense and Interest payable. Adjusting Journal Entry for word problem associated with (6%-interest note payable was made on-Jan-31, 2017, and is due-Feb-1.-2019). --Adjusting Journal.Entry Date... ...Account Title Post. Ref.: Debit ---Credit Dec 31, 2016 Interest-expense (E+) --$2751 -Interest payable (L+)- $2751 -To-accrue interest expense. I --To record interest-accumulated-on-a-6% note payable issued on January 31, 2017.1 Insurance:-Annual policy covers 12 months, purchased in February, covering-March-2017 to February 2018. No monthly adjustments have been made. February 2, 2017 + March, 2017+ April-?-2017 May , 2017 June 7, 2017-1 (1.) (2.) (3.) (4.) July 2, 2017 August-2-2017 September 2, 2017 - October 2, 2017 (5.) (6) --- -(7.) (8.) November 2, 2017 - December 31, 2017 January 2, 2018 February 2, 20181 (10.)..... -0.) *Since-Peyton prepays 10 months prepaid insurance of on-March-2,-2017--from-March-2, 2017 to December 31, 2017 (10 months). Next, I must-look at the-Unadjusted Trial Balance lists-$2,114.55 as the dollar amount- representing the account called-Prepaid-Insurance, which can be found on the spreadsheet-called- Unadjusted Trial-Balance of the Microsoft Office Excel file called-3-1-FinalProject-Milestone One-Workbook for ACC 308-Intermediate Accounting 2. March 2, 2017---Prepaid-Insurance (A+).. $2,114.555 --Total number of months covered- --Number of months expired (used-up) -107 *No monthly adjustments have been made. -124 10 months = $2,114.55.x 12 months 1 = $2,114.55*0.83333 3333337 = $1,762.1251 1 Round to the nearest hundredth, so it is $1,762.13.1 1 = $1,762.131 1 --Adjusting Journal Entry Date Account Title Post.Ref..... -Debit....Credit Dec 31, 2017 ---Insurance expense (E+) $1,762.131 - Prepaid Insurance (A-) $1,762.131 --To record expiration of 10 months of insurance coverage purchased on February 2. 2017.1