Following are selected transactions Dawood Company for 2014.

Dec. 13

Accepted a $20,000, 45-day, 10% note dated December 13 in granting Majda Labib a time extension on her past-due account receivable.

31

Prepared an adjusting entry to record the accrued interest on the Labib note.

First, complete the table below to calculate the interest amounts at December 31st. (Do not round intermediate calculations. Use 360 days a year.)