Riverside Corporation began 2020 owing noles payable of \(\$ 3.5\) million. During 2020. Riverside borrowed \(\$ 1.7\) million on notes payable and paid off \(\$ 1.6\) million of notes payable from prior years. Interest expense for the year was \(\$ 0.4\) million, including \(\$ 0.2\) million of interest payable accrued at December 31, 2020.

Show what Riverside should report for these facts on the following financial statements:

1. Income statement for 2020

a. Interest expense 2. Balance sheet as of December 31, 2020

a. Notes payable

b. Interest payable