Problem 1 Note Payable 20 minutes 28 marks

Hogwarts Inc. entered into the following transactions during 2020:

June 1	Hogwarts Inc. asked to extend its past due $7,000 account payable to Gryffindor Inc. Gryffindor Inc. agrees to accept $2,000 and a 15-day, 13% note to replace the account payable.
June 15	Hogwarts Inc. paid the note payable owed to Gryffindor Inc. in full at maturity.
December 1	Borrowed $35,000 cash from Gringotts Bank in exchange for a 90-day, 6% note payable.
December 31	Recorded any required adjusting entries for the accrual of interest on notes payables.
March 1	Hogwarts Inc. pays the note to Gringotts Bank in full at maturity.

Required:

1. Prepare the journal entries for Hogwarts Inc. to record the transactions above.