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

Leach Company borrowed $$120,000$ cash by issuing a note payable on June $1,$ Year $1.$ The note had an $9$ percent annual rate of interest and a one$-$year term to maturity.

Required:

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

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

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

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

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

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

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

Compriete this question by entering your answers in the tabs below.

ReqA,ReqB,ReqC and $D,$ Req $E$ to $G$

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

Interest expense