On February 1, Chopper Motorcycles Ltd.signed a 5%, twelve-month bank loan payable for $168,000 to help finance increases in inventory for the spring and summer season.Assuming no entries have been made previously for the interest on this loan, what is the required adjusting entry for the interest accrued to December 31? 
Definitions:
Journal Entries
Records of financial transactions in the accounting system that are used to transfer amounts from one account to another.
Depreciation Expense
An accounting method of allocating the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.
Accumulated Depreciation
The total amount of depreciation expense that has been recorded against a fixed asset over its useful life.
Adjusting Journal Entry
A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.
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