Question: Question 9 (5 points) Interest on Notes Payable (question 1 of 2) Scrimiger Paints wants to upgrade its machinery and on October 1 takes out

Question 9 (5 points) Interest on Notes Payable (question 1 of 2) Scrimiger Paints wants to upgrade its machinery and on October 1 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 4% annual interest rate and due in 9 months. Interest is due in equal payments on the 1st day of each quarter (i.e. Jan 1, Apr 1, July 1, Oct 1). Scrimiger Paints' accounting cycle is 1/1 to 12/31 Show year end adjusting entry to recognize the interest expense for year 1. 1. Cash $5,000 2. Interest Expense $5,000 Credit

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