On April $1,$ Year $1,$ US Crypto, Incorporated borrowed $$500,000$ to finance the purchase of server computers to assist in the launch of the company$$s cryptocurrency exchange. The note had a one$-$year term and a $4$ percent annual interest rate. Assume interest is paid in cash on the loan maturity date.

Required

What is the amount of accrued interest expense at the end of Year $1?$

Use a horizontal financial statements model to show how Year $1$ accrued interest expense affects the balance sheet, income statement, and statement of cash flows. In the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$