The Eldorado Corporation’s controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021:                                                                   Debit                          Credit Interest expense                                       7,200            Interest payable                                                               7,200 Rent expense                                          35,000            Prepaid rent                                                                    35,000 Interest receivable                                     500             Interest revenue                                                               500 Additional information:1. The company borrowed $120,000 on March 31, 2021. Principal and interest are due on March 31, 2022. This note is the company’s only interest-bearing debt.2. Rent for the year on the company’s office space is $60,000. The rent is paid in advance.3. On October 31, 2021, Eldorado lent money to a customer. The customer signed a note with principal and interest at 6% due in one year. Required:Determine the following:1. What is the interest rate on the company’s note payable?2. The 2021 rent payment was made at the beginning of which month?3. How much did Eldorado lend its customer on October 31?

The Eldorado Corporation’s controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021:

                                                                  Debit                          Credit

Interest expense                                       7,200

           Interest payable                                                               7,200

Rent expense                                          35,000

           Prepaid rent                                                                    35,000

Interest receivable                                     500

            Interest revenue                                                               500

Additional information:
1. The company borrowed $120,000 on March 31, 2021. Principal and interest are due on March 31, 2022. This note is the company’s only interest-bearing debt.
2. Rent for the year on the company’s office space is $60,000. The rent is paid in advance.
3. On October 31, 2021, Eldorado lent money to a customer. The customer signed a note with principal and interest at 6% due in one year.

Required:
Determine the following:
1. What is the interest rate on the company’s note payable?
2. The 2021 rent payment was made at the beginning of which month?
3. How much did Eldorado lend its customer on October 31?