1.On January 1, 2020, GE issued a $3,500,000, 10 year, 6.5% installment note payable with payments of $350,000 principal plus interestdue on January 1 of each year for the next 10 years.

1. Prepare the adjusting journal entry at December 31, 2020 to accrue interest for the year.

2. Show the account(s) and amount(s) and where it will appear on a multi-step income statement prepared on December 31, 2020.

3. Show the account(s) and amount(s) and where they will appear on a classified balance sheet prepared on December 31, 20120(hint, think current & long term).