Exercise 2-35A Fffects of recognizing accrued interest on financial statements (Appendix) Ben Bradley started Bradley Company on January 1. Year 1. The company experienced the following events during its first year of operation: 1. Earned $2,000 of cash revenue for performing services. 2. Borrowed $8,000 cash from the bank. 3. Adjusted the accounting records to recognize acerued interest expense on the bank note. The note, issued on August 1 , Year 1 , had a one-year term and a 6 percent annual interest rate