Leisure Travel borrowed $100,000 on Oct 1st by signing a note payable to First State Bank. The interest expense for each month is $800. The loan agreement requires Leisure to pay interest on Dec 31st.

1. Make Frist State Bank's adjusting entry to accrue monthly interest revenue at Oct 31st, at Nov 30th, and at Dec 31st. DAte each entry and include its explanation.

2. Post all three entries to the Interest Receivable account. You need not take the balance of the account at the end of the month.

3. Record the receipt of three months' interest at Dec 31st.