Accrued Interest On March 1, the Applewood Corporation wanted to purchase a $640,000 piece of equipment, but Applewood was only able to furnish $128,000 of its own cash to purchase the equipment. Applewood borrowed the remainder of the $640,000 from the People's National Bank on a 2-year, 5.5% 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 88 (Record accrued interest expense)