Trent Restaurant borrowed $110,000 on October 1 by signing a note payable to Hometown Bank. The interest expense for each month is $825. The loan agreement requires Trent to pay interest on January 2 for October, November, and December.

1. Make Trent’s adjusting entry to accrue monthly interest expense at October 31, at November 30, and at December 31. Date each entry and include its explanation.

2. Post all three entries to the Interest Payable account. You do not need to calculate the balance of the account at the end of each month.

3. Record the payment of three months’ interest on January 2.