On August 14, 2017, DD Smith borrowed $21,000 from the National Bank, signing a note payable. This note is due in 5 years and has a 4% annual interest rate. The firm pays interest annually, every July 31st. The first interest payment is due July 31, 2018. Show all work. a. Record the journal entry DD Smith would make on August 14, 2017, when it initially borrows the $21,000 from the bank. b. Record the adjusting entry DD Smith would make to recognize Interest Expense on December 31, 2017. Assume DD Smith uses an annual accounting period which ends on December 31st, 2017 and adjusting entries are only made at the end of the annual accounting period on 12/31 (i.e. assume no adjusting entries have been recorded yet for the year). c. Calculate the adjusted balances of both the Interest Payable account and the Interest Expense account as of 12/31/2017. Assume the balance of the Interest Payable account and the balance of the Interest Expense account as of 8/1/2017 were both $0 and there are no other transactions. d. What if DD Smith did not make the adjusting entry on 12/31/2017 to recognize Interest Expense? Indicate by how much the year ending 12/31/2017's 1) assets, 2) liabilities, 3) revenues, 4) expenses, 5) net income, 6) retained earnings, and 7) SHE would be either under-or overstated if this adjusting entry were not recorded. If no effect, write 'no effect.' e. Record the journal entry The Android's Dungeon would make on July 31", 2018, when it makes its first annual interest payment to the bank