Part 1: Notes & Interest Payable 1) On August 31, 2020, Slouch Co. lends $120,000 to Humpback Inc. for 5 months. The note has a 5% annual interest rate with all principal and interest to be paid on January 31, 2021. a. Prepare the journal entry Humpback Inc. records on 8/31/2020? 08/31/2020 b. What adjusting journal entry is required to accrue for interest expense incurred through December 31, 2020 12/31/2020 C. How does posting the journal entry in question 1b affect the accounting equation? d. If Humpback Inc. does not make the adjusting journal entry in 1b, what is the effect on the financial statements? (list all effects) e. On January 31, 2021, Humpback Inc. will pay all principal and interest owed to Slouch Co. What journal entry will Humpback Inc. make to record the payment. 01/31/2021