Exercise 2-14A Recognizing accrued interest expense LO 2-5 Leach Company borrowed $120,000 cash by issuing a note payable on June 1, Year 1. The note had an 9 percent annual rate of interest and a one-year term to maturity 46 points Required a. What amount of interest expense win Leach recognize for the year ending December 31, Year 17 (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) eBook Hrt $ 5,100 nterest expense b. Show how the recognition of interest on December 31, Year 1, affects the accounting equation. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Enter any decreases to account balances with a minus sign.) LEACH COMPANY Accounting Enuatien fer Year 1 Equity Assets Liabilities Interest Notes Retained Conmon