On July 1, 2011 Allen Company signed a $100,000 one year, 3 percent not payable. The Principle and interest will be paid on June 30, 2012. How much interest expense should be reported on the income statement for the year ended December 31, 2011? Question 2: Assume Idaho company recorded the following adjusting journal entry at year-end Insurance expense : $2,000 Prepaid Insurance: $2,000 If the Beginning balance in prepaid insurance was $700 and $2,500 was paid for an insurance premium during the year, what is the ending balance in the period insurance account after the above adjusting entry?