Omega Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31, Year 1: (1) A one-year bank loan of $774,000 at an annual interest rate of 12% had been obtained on December 1, Year 1. (2) The company pays all employees up-to-date each Friday. Since December 31, Year 1, fell on Tuesday, there was a liability to employees at that date for two day's pay amounting to $7,700. (3) On December 1, Year 1, rent on the office building had been paid for four months. The monthly rent is $6.900. (4) Depreciation of office equipment is based on an estimated useful life of six years. The balance in the Office Equipment account is $12,600; no change has occurred in the account during the year. (5) Fees of $10,700 were earned during the month for clients who had paid in advance. What amount of interest expense has accrued on the bank loan? Multiple Choice $6.940 $7740 $8.340 $7.540