On January 1, Luther Co. issued a $1,000,000, five-year, 8% installment note payable with payments of $250,456 principal plus interest due on January 1 of each year for the next five years. 1. Prepare the adjusting journal entry at December 31 to accrue interest for the year. Interest Expense 80,000 Interest Payable 80,000 2. Show the account(s) and amount(s) where accrued interest will appear on a multi-step income statement prepared on December 31. Interest Expense $ 80,000 reported as other expense. 3. Show the account(s) and amount(s) and where they will appear on a classified balance sheet prepared on December 31. Partial Balance Sheet Current Liabilities: Long-Term Liabilities