Midshipmen Company borrows $16,000 from Falcon Company on July 1, 2024. Midshipmen repays the amount borrowed and will pay interest of 12% (1\% per month) on June 30, 2025. The balance of Interest Payable at the beginning of the year is $0. Determine the accounts to be adjusted by Midshipmen on December 31, the amount of the adjustment, and the ending balances. Assume no adjustments were previously made during the year