Sielert Corporation borrowed $900,000 from National Bank on May 31, 2013. The three-year, 7% note required annual payments of $342,945 beginning May 31, 2014. Interest expense for the year ended December 31, 2013 was

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Interest expense for the year ended December 31, 2013 is calculated as follows:Interest expense = Principal x Interest rate x TimeInterest expense = $900,000 x 7% x 7/12Interest expense = $36,750

Sielert Corporation Borrowed $900,000 from National Bank on May 31