Assume that Fallon Sales Company completed the following note-payable transactions:
2014
Apr 1 Purchased delivery truck costing $58,000 by issuing a one-year, 4% note payable.
Dec 31 Accrued interest on the note payable.
2015
Apr 1 Paid the note payable at maturity.
Requirements
1. How much interest expense must be accrued at December 31, 2014? (Round your answer to the nearest whole dollar.)
2. Determine the amount of Fallon Sales’ final payment on April 1, 2015.
3. How much interest expense will Fallon Sales report for 2014 and for 2015? (Round your answer to the nearest whole dollar.)