On December 1, 2019, Jim's Java Joint borrowed $50,000 from its bank in order to expand its operations.
The firm issued a four-month, 6 percent note for $50,000 to the bank and received $49,000 in cash because the bank deducted the interest for the entire period in advance. In general journal form, show the entry that would be made to record this transaction and the adjustment for prepaid interest that should be recorded on the firm's worksheet for the year ended December 31, 2019. Omit descriptions. Round your answers to the nearest dollar.