Brief Exercise 8-40 (Algorithmic) Accrued Interest On May 1, the Garnett Corporation wanted to purchase a $515,000 piece of equipment, but Garnett was only able to furnish $92,700 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $515,000 from the People's National Bank on a 3-year, 8% note. Required: If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 31? Round amounts to the nearest dollar. Dec 31 (Record accrued interest expense)