Cookie Lapp Travel borrowed \(\$ 50,000\) on October 1 by signing a one year note payable to Community One Bank. Lapp's interest expense for the remainder of the year (October through December) is \(\$ 700\).

1. Make Cookie Lapp's adjusting entry to accrue interest expense at December 31. Date the entry and include its explanation.

2. Post to the two accounts affected by the adjustment.