The following are selected transactions of Eldorado Company. Eldorado prepares financial statements quarterly.

Jan. 2 Purchased merchandise on account from McCoy Company, \(\$ 15,000\), terms 2/10, \(\mathrm{n} / 30\).

Feb. 1 Issued a \(10 \%, 2\)-month, \(\$ 15,000\) note to McCoy in payment of account.

Mar. 31 Accrued interest for 2 months on McCoy note.

Apr. 1 Paid face value and interest on McCoy note.

July 1 Purchased equipment from Scottie Equipment paying \(\$ 11,000\) in cash and signing a \(10 \%, 3\)-month, \(\$ 24,000\) note.

Sept. 30 Accrued interest for 3 months on Scottie note.

Oct. 1 Paid face value and interest on Scottie note.

Dec. 1 Borrowed \(\$ 10,000\) from the Federation Bank by issuing a 3-month, \(9 \%\)-interestbearing note with a face value of \(\$ 10,000\).

Dec. 31 Recognized interest expense for 1 month on Federation Bank note.

\section*{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 at December 31.

(d) What is total interest expense for the year?