Following are selected transactions of Danica Company for 2016.

Dec. 13 Accepted a $10,000, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note.

use a table to calculate the interest amounts at December 31^st and use the calculated value to prepare journal entries. (Do not round your intermediate calculations. Use 360 days a year.)