O7 5 Exercise 2-14A (Algo) Recognizing accrued interest expense LO 2-5 2 points Leach Company borrowed $85.000 cash by issuing a note payable on June 1 Year 1 The note had an 6 percent annual rate of interest and a one-year term to maturity eBook Required 6. What amount of interest expense will teach recognize for the year ending December 31, Year 1? b. Record the issue of notes payable and recognition of interest on December 31 Year 1 in the accounting equation for Year 1 c. What amount of cash will Leach pay for interest expense in Year 1? d. What is the amount of interest payable as of December 31, Year 1? e. What amount of cash will teach pay for interest expense in Year 2? f. What amount of interest expense will teach recognize in Year 22 g. What is the amount of interest payable as of December 31 Year 2? Hant Print Complete this question by entering your answers in the tabs below. Referee GA Red Reg C and D Red Eto G What amount of loterest expense will teach recognize for the year ending December 31, Year 1% Reqa > ReqA Req B Reg C and D Reg Eto G Record the issue of notes payable and recognition of interest on December 31, Year 1, in the accounting equation for Year 1. Enter any decreases to account balances with a minus sign.) Assets LEACH COMPANY Accounting Equation for Year 1 Liabilities Notes Interest Payable Payable Cash Equity Common Retained Stock Eamings Event Juno 01 Dec 31 9. What is the amount of interest payable as of December 31 Year 2! Complete this question by entering your answers in the tabs below. Red A Reg B ReqC and D Reg Eto G c. What amount of cash will Leach pay for interest expense in Year 1? d. What is the amount of interest payable as of December 31, Year 12 Year 1 c. Amount of cash paid Interest payable ces Reg A Reg B Reg C and D Reg E to G e. What amount of cash will Leach pay for interest expense in Year 2? f. What amount of interest expense will teach recognize in Year 2? 9. What is the amount of Interest payable as of December 31, Year 2? Year 2 e Interest expense Interest expense 9 Interest payable