Accrued Interest

On March $1,$ the Applewood Corporation wanted to purchase a $$165,000$ piece of equipment, but Applewood was only able to furnish $$29,700$ of its own cash to purchase the equipment. Applewood borrowed the remainder of the $$165,000$ from the People's National Bank on a $2-$year, $6\%$ note.

Required:

If the company keeps its records on a calendar year, what adjusting entry should Applewood make on December $31?$ If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar.

Dec. $31$

$($Record accrued interest expense$)$