Question: Wellington Company had the following transactions involving notes payable.
Nov. 1, 2010 Borrows $90,000 from Olathe State Bank by signing a 3-month, 10% note.
Dec. 31, 2010 Prepares the adjusting entry.
Feb. 1, 2011 Pays principal and interest to Olathe State Bank.
Prepare journal entries for each of the transactions.