Chapter 8, Problem 8.13AE

(Learning Objective 3: Record note payable transactions) Dean Sales Company completed the following note payable transactions:

2018
Jut 1	Purchased delivery truck costing $58,000 by issuing a one-year, 4% note payable.
Dec 31	Accrued interest on the nine payable.
2019
Jut 1	Paid the note payable at maturity.

Requirements

  1.    How much interest expense must be accrued at December 31, 2018? (Round your answer to the nearest whole dollar.)

  2.    Determine the amount of Dean Sales’ final payment on July 1, 2019.

  3.    How much interest expense will Dean Sales report for 2018 and for 2019? (If needed, round your answer to the nearest whole dollar.)