Assume that Cart Sales Company completed the following note payable transactions:
2016
Jul 1 Purchased delivery truck costing $57,000 by issuing a one-year, 6% note payable.
Dec 31 Accrued interest on the note payable.
2017
Jul 1 Paid the note payable at maturity.
Requirements
1. How much interest expense must be accrued at December 31, 2016? (Round your answer to the nearest whole dollar.)
2. Determine the amount of Cart Sales' final payment on July 1, 2017.
3. How much interest expense will Cart Sales report for 2016 and for 2017?