Question

Question 1 Net 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 December 31, 2011 Note 1 Novemer 16, 2011 $14,000 Note 2 December 04, 2011 18.000 December 31, 2012 December 07, 2012 11.000 Net December 21, 2012 20.000 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 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

Answer 1

A Entres at Dee 31, 2011 Interest expense 6143 Interest Payable $143. Con notes) $14000X8%x 46/3607 Interest expense $122 Interest Payable $122 con note 2) 18000% 9%. * 293601 Adjusting entues in 2012 Interest expense $149 Intercit payable $149. C M8000 x@% X 33/360) Nole payable $18000 $1800 (on note of) (B) Feba

Maxi5 Interest expense $233 Interest payable $23 ($14odox 6% x 75/360) Note payable $ 14000 Bank $14000 con notes are © Dec 31, 2012 Intesest expense $66 Intesest pecable $66 con note 3) [$11000x9%x24/360) Intesest opense $56 Interest payable $36 con note 4 (B20000 x107x 10