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, 12% 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, $250 Dr. Interest expense and Cr. Interest payable, $500 Dr. Interest expense and Cr. Cash, $250 Dr. Interest expense and Cr. Cash $500 What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2022? $26,500 $28,000 $27,500 $26,250 In connection with this note, ABC Company should report interest expense in 2022 for the amount of $1,250 $3,000 $2,500 $1,500