Dec. 31, 2017 QS 3-11Preparing adjusting entries (annual)-accrued interest expense LO4 Jan. 1, 2017 Dec. 31, 2018 Max. May July Sept. Nov. Jan. Mar. May July Sept. Nov. Feb. Apr. June Aug. Oct Dec. Feb Apr. June Aug Oct. Dec. 2017 2018 Bank Loan Rise and Shine Ice Cream prepares annual financial statements and has a December 31 year-end. As of March 1, 2017, Rise and Shine Ice Cream took out a bank loan for $12,000 with an interest rate of 8%. Interest is incurred on a monthly basis and needs to be paid on December 31, 2018. a. What is the formula to calculate interest expense? b. How many months of interest expense have been incurred at December 31, 2017? C. In order to prepare the annual financial statements, record the adjusting journal entry on December 31, 2017.