**Answer:**

**Explanation:**

The journal entries are shown below:

a. Cash A/c Dr $45,000

To Notes payable A/c $45,000

(Being note is issued for cash)

b. Interest expense A/c Dr $333

To Interest payable A/c $333

(Being accrued interest adjusted)

The computation is shown below:

**= Principal × rate of interest × number of days ÷ (total number of days in a year) **

= $45,000 × 9% × (30 days ÷ 365 days)

= $333

The 30 days is calculated from December 1 to December 31

(C) Interest expense A/c Dr $665.75

Interest payable A/c Dr $333

Notes payable A/c Dr $45,000

To Cash A/c $45,998.75

(Being cash is paid on maturity)

The computation is shown below:

**= Principal × rate of interest × number of days ÷ (total number of days in a year) **

= $45,000× 9% × (60 days ÷ 365 days)

= $665.75

From January 1 to March 1 it would be 60 days

We assume 365 days a year.