A) what is the formulas to calculate interest expense? B) how many months of interest expense have been incurred at December 31, 2020? C) in order to prepare the annual financial statements, record the adjusting journal entry on December 31, 2020

c. To prepare the 2020 annual financial statements, record u QS 3-11 Preparing adjusting entries (annual)-accrued interest expense LO4 Dec. 31, 2021 Jan. 1, 2020 Dec. 31, 2020 Nov. May July Sept. May July Sept. June Aug. Oct. Dec. Feb. Apr. June Oct. Apr. Aug. Dec. Feb. 2021 2020 Bank Loan Rise and Shine Ice Cream prepares annual financial statements and has a December 31 year-end. As of March 1, 2020, Rise and Shine Ice Cream took out a bank loan for $12,000 with an interest rate of 8%. Interest is incurred on a monthly basis and needs to be paid on December 31, 2021. 196