MESSAGE NY INSTRUCTOR FULL SCREEN Exercise C-06 The ledger of Novak Corp. on March 31 of the current year includes the following selected accounts before quarterly adjusting entries have been prepared: Credit Debit $3,420 2,840 25,150 174,000 Prepaid Insurance Supplies Equipment FV-OCI Investments Accumulated Depreciation-Equipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense $7,800 22,400 8,750 59,900 13,400 An analysis of the accounts shows the following: 1. 2. 3. 4. 5. 6. The equipment depreciation is $325 per month One half of the unearned rent was earned during the quarter. Interest of $336 has accrued on the notes payable. Supplies on hand total $935. Insurance expires at the rate of $285 per month The FV-OCI Investments were purchased for $174,000 on March 1. No investments were purchased or sold after that date. The fair value on March 31 was $194,000 Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. (Credit account titles are automatically indented when amount is en pure bdjusting entries at March 31, assuming that adjusting entries are made quarterly. (Credit account titles are automatically indented when amount is entered. Do not i manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) No. Account Titles and Explanation Debit Credit 1. 2. 5. Annual interest Rate If the notes payable have been outstanding since January 1 of the current year, what is the annual interest rate on the notes payable (Round answer to 2 decimal places15.359.)