On December 1, 2021, ABC Company, borrows $60,000 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, 6% 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, $300 Dr. Interest expense and Cr. Interest payable, $600 Dr. Interest expense and Cr. Cash, $300 Dr. Interest expense and Cr. Cash, $600 What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2022? $61,800 $63,600 $63,000 $61,500 In connection with this note, ABC Company should report interest expense in 2022 for the amount of: $1,500 $3,600 $3,000 $1,800