QS 3-11 Preparing adjusting entries (annual)-accrued interest expense LO4 Jan. 1, 2020 Dec. 31, 2020 Dec. 31, 2021 Mar. May July Sept. Nov. Jan. Mar. May July Sept. Nov. Jan. Feb. Apr. June Aug. Oct. Dec. Feb. Apr. 2020 June Aug. 2021 Oct. Dec. Bank Loan Rise and Shine Ice Cream prepares annual financial statements and has a December 31 year-end. As of March 1, 2020, Rise and Shine Ice Cream took out a bank loan for $12,000 with an interest rate of 8%. Interest is incurred on a monthly basis and needs to be paid on December 31, 2021. 196