Vigeland Company completed the following transactions during Year 1. Vigelands fiscal year ends on December 31

Apr.

1

Borrowed $612,000 from Summit Bank for general use; signed a 10-month, 14% annual interest-bearing note for the money.

I am confused why we don't include interest expense and payable here. The expense has already incurred from April to December or at least we should record the expense in December.

2 April 01 612,000 77,112 x Cash Interest expense Interest payable Note payable, short term X X 85,680 X 612,000