Question 1 Not complete Marked out of 1.00 P Flag question Adjusting Entries for Interest At December 31, 2011, Hoffman Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2012, Hoffman 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 996 120 $13,000 17,000 1096 60 December 31, 2011 Note 1 Novemer 16, 2011 Note 2 December 04, 2011 December 31, 2012 Note 3 December 07, 2012 Note 4 December 21, 2012 10,000 1096 60 19,000 1196 30 Required a. Prepare the adjusting entries for interest at December 31, 2011. b. Assume that the adjusting entries were made at December 31, 2011. Prepare the 2012 journal entries to record payment of the notes that were outstanding at December 31, 2011. c. Prepare the adjusting entries for interest at December 31, 2012. Round answers to nearest dollar. Use 360 days for interest calculations when applicable. General Journal Description Debit Credit Date a. Dec. 31 S Dec 31 $ $ To record interest on note 1. Dec 31 To accrue interest on note 2. b. Feb.2 Notes Payable Interest Expense To record payment of Note 2. Mar.15 Notes Payable Interest Expense To record payment of Note 1. Dec. 31 To record interest on Note 3. Dec.31 To record interest on Note 4. Check