Duneside Corporation began 2012 owing notes payable of $4.1 million. During 2012 Duneside 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 $0.8 million, including $0.3 million of interest payable accrued at December 31, 2012.
Show what Duneside should report for these facts on the following financial statements:
1. Income statement
a. Interest expense
2. Balance sheet
a. Notes payable
b. Interest payable