Grocery Corporation sold $500,000, 7 percent notes on January 1, 2014, at a market rate of 8 percent. The notes were dated January 1, 2014, with interest to be paid each December 31; they mature 10 years from January 1, 2014. Use effective-interest amortization

Show how the interest expense, interest payment, and notes payable should be reported on the financial statements for 2014. (Round your intermediate and final answers to the nearest dollar amount. Round time value factor to 4 decimal places.)