On December 1, 2021, ABC Company, borrows $25,000 cash to expand operations. The loan is made by First Bank under a short-term line of credit arrangement. The company signs a six-month, 3% promissory note. Interest is payable at maturity. ABC's year-end is December 31. Required: ABC Company should record which of the following adjusting entries at December 31, 2021? Dr. Interest expense and Cr. Interest payable, $62 Dr. Interest expense and Cr. Interest payable, $125 Dr. Interest expense and Cr. Cash, $62 Dr. Interest expense and Cr. Cash, $125 What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2022? O $25,375 O $25,750 O $25,625 $25,312 In connection with this note, ABC Company should report interest expense in 2022 for the amount of: $312 $750 O $625 $375