Spencer Company borrowed $40,000 from the bank on December 1, 20x1. The note had an 8 percent annual interest rate and matured on May 31, 20x2, when Spencer paid the principal and interest on the note. Required: a) What amount of cash did Spencer pay for interest in 20x1? b) What amount of interest expense did Spencer report on the 20x1 income statement? c) What was the amount of liabilities that Spencer reported on its balance sheet at the end of 20x1? d) What was the amount of cash that Spencer paid to the bank on May 31, 20x2? e) What amount of interest expense was reported on the 20x2 income statement