Sheridan Limited borrowed $$68,400$ from National Limited on July $1$ and issued a three$-$month note payable at $5\%$ due at maturity on

October $1.$ Sheridan's year end is August $31$ and the company records adjusting entries only at that time.

Prepare the journal entries that National Limited would record on the note it received from Sheridan Limited, assuming it makes

adjusting entries monthly, for the accrual of interest income on July $31,$ August $31,$ and September $30.($Credit account titles are

outomatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts. Record journal entries in the order presented in the question statement. List all debit entries before credit

entries.$)$

Interest Income

Interest Income