At December 31, 2017, Eric Corporation had two notes payable outstanding (notes 1 and 2). At December 31, 2018, Eric also had two notes payable outstanding (notes 3 and 4). These notes are described below:

Required

a. Prepare the adjusting entries for interest at December 31, 2017.

b. Assume that the adjusting entries were made at December 31, 2017. Prepare the 2018 journal entries to record payment of the notes that were outstanding at December 31, 2017.

c. Prepare the adjusting entries for interest at December 31, 2018.

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Date of Note Principal Amount Interest Rate Number of Days December 31, 2017 Note 1... 11/16/2017 $30,000 8% Note 2.. 12/4/2017 16,000 9 120 60 28 December 31, 2018 Note 3... 12/7/2018 9,000 Note 4.. 12/21/2018 18,000 12 10 60 12 30