The following are selected transactions of Learnstream Company. Learnstream prepares financial statements quarterly and uses a perpetual inventory system. Jan. 12 Purchased merchandise on account from McCoy Company for $18,000, terms n/30.

Feb. 1 Issued a two-month, 10%, $18,000 note to McCoy Company in payment of account. Inter- est is payable at maturity.

Mar. 31 Accrued interest on the McCoy note. Apr. 1 Paid the face value and interest on the McCoy note. July 1 Purchased equipment from Scottie Equipment by paying $11,000 in cash and signing a 10%, three-month note for $25,000. Interest is payable at maturity. Sept. 30 Accrued interest on the Scottie note. Oct. 1 Paid the face value and interest on the Scottie note. Dec. 1 Borrowed $20,000 from the Toronto-Dominion Bank by issuing a 9%, three-month note. Interest is payable monthly, on the first of each month. Dec. 31 Recognized interest expense on the Toronto-Dominion Bank note. Instructions (a) Prepare journal entries for the above transactions and events. (b) Post to the accounts Notes Payable, Interest Payable, and Interest Expense. (c) Show the balance sheet presentation of Notes Payable and Interest Payable at December 31, 2003. (d) What is the total interest expense for the year?