Rebecca Fleming and Carrie Platt borrowed $12,000 on 7-month, 9% note from Gopher State bank to open thier business, RC'C Coffee House. The money was borrowed on June1,2016, and the note matuers Jan1,2017

1) Prepare the entry to record the receipt of the funds from the loan.

2) Prepare the entry to accrue the interest on June 30

3) Assuming adjusting entries are made at the end of each month, determine the balance in the interest payable account at Dec 31,2016

4) Prepare the entry required on Jan 1,2017 when the loan is paid back