On November 1, Bob's Skateboards signed a $12,000, 90-day, 5% note payable to cover a past due account payable.
Required:
a. What amount of interest expense on this note should Bob's Skateboards report on year-end December 31?
b. Prepare Bob's journal entry to record the issuance of the note payable.
c. Prepare Bob's journal entry to record the payment of the note on February 1 of the following year.