Norbert Corporation borrowed $24,000 on December 1, 2011, by issuing a two month, 8 percent note payable to Service One Credit Union. The entire amount of the loan, plus interest, is due February 1, 2012.

a.

Prepare the necessary adjusting entry for interest expense on December 31, 2011. (Omit the “$” sign in your response.)

Date General Journal Debit Credit
Dec. 31 (Click to select)Interest expenseInterest payableAccounts receivableShort term investmentSalaries expenseCashNotes payableRent expense
(Click to select)Short term investmentCashNotes payableAccounts receivableSalaries expenseRent expenseInterest payableInterest expense

b.

Record the repayment of the loan plus interest on February 1, 2012. (Omit the “$” sign in your response.)

Date General Journal Debit Credit
Feb. 1 (Click to select)Interest payableOffice suppliesInterest expenseShort term investmentCashRent expenseAccounts receivableNotes payable
(Click to select)CashInterest payableShort term investmentOffice suppliesNotes payableInterest expenseRent expenseAccounts receivable
(Click to select)Interest payableInterest expenseShort term investmentRent expenseNotes payableOffice suppliesCashAccounts receivable
(Click to select)Short term investmentInterest payableCashRent expenseOffice suppliesNotes payableInterest expenseAccounts receivable