Tom’s Surf Company, whose fiscal year ends December 31, completed the following transactions involving notes payable:2018Nov 30 Purchased inventory display equipment by issuing a 60 day 10 percent note for $35,000.Dec 31 Made the end-of-year adjusting entry to accrue interest expense2019Jan 29 Paid off the balance of the notePrepare the journal entries for the above transactions. Round your answers for interest calculations to the nearest cent. Assume there are 365 days in the year.

Q: The following selected transactions are from Ohlm Company. (Use 360 days a year.) 2016 Dec. 16…

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A:

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A: Introduction: Journals: Each and every business transactions are to be recorded in Journals.…

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A: Step 1: a. Compute the discount on notes payable as follows:

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A: Answer:   Option c.

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