Joy's Bar and Grill completed the following note-payable transactions:
2017
Aug. 1 Purchased kitchen equipment costing $60,000 by issuing a one-year, 5% note.
Dec. 31 Accrued interest on the note payable.
2018
Aug. 1 Paid the note payable at maturity.
Answer these questions for Joy's Bar and Grill:
1. How much interest expense must be accrued at December 31, 2017?
2. Determine the amount of Joy's final payment on July 31, 2018.
3. How much interest expense will Joy's report for 2017 and for 2018?