Pumpkin Company operates with a December 31 year end. On October 1, 20X8, the company signed a nine-month, 8% loan for $20,000. Interest and principal are to be paid at maturity.

1. What amount of interest was paid in cash in 20X8?

2. What amount of interest expense was reported on the 20X8 income statement?

3. What amount of total liabilities was reported on the December 31, 20X8 balance sheet?

4. What total amount of cash was paid to the bank on July 1, 20X9 for principal and interest?

5. What amount of interest expense was reported on the 20X9 income statement?

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Step by step explanation please