b. On 12/31 Year 7, at fiscal year-end, INTEREST EXPENSE on the 6% note payable / is accrued to INTEREST PAYABLE. (Use months to calculate interest.) Calculation of INTEREST EXPENSE at 12/31 Year 7: Principal X Rate X Time X .06 X / = INTEREST EXPENSE Phrase Account Category Affect Dr. or Cr. 1st: 2nd: AL SERE contra +- Dr Cr AL SERE contra +- Dr Cr Date Accounts Debit Credit