Use the following to answer questions 11 - 12 On August 1" the company borrows $500,000 from a local bank for nine months. A note is signed with principal and 4.5% interest to be paid when the note matures next year. A note payable was recognized on August 1" and no other entries regarding this transaction were made until December 31st. 11. $ In the adjusting entry recorded on December 31 determine the amount of interest expense that should be reported.