On July 1, 2017, A Inc, a not-publicly-traded company, took out a short-term loan of $45,000 to be repaid in one year. The annual interest rate is 4% with no interest payments due until the loan is repaid on June 30, 2018. Interest accrues every 6 months (on December 31, and on June 30th of each year). a.) Please record the journal entries, if any, that A would record related to this note on July 1, 2017. b.) Please record the journal entries, if any, that A would record related to this note on December 31, 2017. c.) Please record the journal entries, if any, that A would record related to this note on June 30, 2018

2. 123s Inc. accrues interest on all of its outstanding loans on December 31 of each year. Calculate the interest accrued for each of the following notes payable owed by Horders, Inc. as of December 31, 2021. Bank Note # Date of Note Principal Annualized Interest Rate Term Note 1 10/01/21 $150,000 3.0% 4 months Note 2 08/01/21 $ 120,000 4.0% 6 months Note 3 05/1/21 $ 200,000 6.5% 1 year a.) Please provide the journal entry recorded to accrue interest on December 31st related to each of the notes listed above. Please provide a journal entry for the accrual of interest on each individual note (I recommend you do an entry labeled Note 1, then another for Note 2, etc.). You do not need to record journal entries for the cash payment of this interest.