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Alex borrows money from its bank to finance operating activities. As a result of a variety of lender requirements, sometimes Alex has to pay interest

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Alex borrows money from its bank to finance operating activities. As a result of a variety of lender requirements, sometimes Alex has to pay interest before, during and/or after the term of the loan. In Years 5 and 6, Alex had cash basis Interest Expense of $5,000 and $6,500, respectively. As part of a loan application process, the firm needed to state its interest expense on the accrual basis. Accountants have determined these proper balances in all of the firm's interest related accounts at the dates indicated: 12/31/Yr 4 12/31/Yr 5 12/31/Yr 6 Prepaid Int 300 700 400 Int Pay 600 200 300 Required: .Determine Alex's accrual Interest Expense in Year 5: $ .Determine Alex's accrual Interest Expense in Year 6: $

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