The following are selected transactions of Andreu Company. Andreu prepares financial statements quarterly.

Jan. 2 Purchased merchandise on account from Diego Company, $30,000, terms 2/10, n/30. (Andreu uses the perpetual inventory system.)

Feb. 1 Issued a 9%, 2-month, $30,000 note to Diego in payment of account.

Mar. 31 Accrued interest for 2 months on Diego note.

Apr. 1 Paid face value and interest on Diego note.

July 1 Purchased equipment from Garcia Equipment paying $11,000 in cash and signing a 10%, 3-month, $40,000 note.

Sept. 30 Accrued interest for 3 months on Garcia note.

Oct. 1 Paid face value and interest on Garcia note.

Dec. 1 Borrowed $15,000 from the Isova Bank by issuing a 3-month, 8% note with a face value of $15,000.

Dec. 31 Recognized interest expense for 1 month on Isova Bank note.

Instructions

(a) Prepare journal entries for the listed transactions and events.

(b) Post to the accounts Notes Payable, Interest Payable, and Interest Expense.

(c) Show the balance sheet presentation of notes and interest payable at December 31.

(d) What is total interest expense for the year?