January 1, 2022. Principal and interest are payable to the bank on January 1,2023 . If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on January 31,2022 would be: debit Interest Expense, \$1,750; credit Interest Payable, \$1,750. debit Interest Expense, \$583; credit Interest Payable, \$583. debit Interest Payable, \$7,000; credit Cash, $7,000. No adjusting entry is needed until the load is paid off