P10-2A. Adjusting Entries for Interest At December31, 2017, Eric Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2018, Eric also had two notes payable outstanding (notes 3 and 4). These notes are described below:

Date of Note Principal Amount Interest Rate number of Days

December 31, 2017

Notes 1........11/16/2017 $30,000 8% 120

Note 2......12/4/2017 16,000 9 60

December 31, 2018

Note 3 12/7/2018 9,000 10 60

Note 4 12/21/2018 18,000 12 30

Required

.a. Prepare the adjusting entries for interest at December 31, 2017.

b. Assume that the adjusting entries were made at December 31, 2017. Prepare the 2018 journal entries to record payment of the notes that were outstanding at December 31, 2017.

c. Prepare the adjusting entries for interest at December 31, 2018.