Exercise $2-14$A $($Algo$)$ Recognizing accrued interest expense LO $2-5$

Leach Company borrowed $$55,000$ cash by issuing a note payable on June $1,$ Year $1.$ The note had an $6$ percent annual rate of interest and a one$-$year term to maturity.

Required:

What amount of interest expense will Leach recognize for the year ending December $31,$ Year $1?$

Record the issue of notes payable and recognition of interest on December $31,$ Year $1,$ in the accounting equation for Year $1.$

What amount of cash will Leach pay for interest expense in Year $1?$

What is the amount of interest payable as of December $31,$ Year $1?$

What amount of cash will Leach pay for interest expense in Year $2?$

What amount of interest expense will Leach recognize in Year $2?$

What is the amount of interest payable as of December $31,$ Year $2?$