## Answers

2a | ||||

Dec 31,2017 | Interest expense | 8400 | =560000*9%*2/12 | |

Interest payable | 8400 | |||

2b | ||||

Oct 31,2018 | Interest expense | 42000 | =560000*9%*10/12 | |

Interest payable | 8400 | |||

Notes payable | 93570 | |||

Cash | 143970 |

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