On December 1, 20X1, Jenny’s Java Joint borrowed $50,000 from its bank in order to expand its operations. The firm issued a four-month, 9 percent note for $50,000 to the bank and received $48,500 in cash because the bank deducted the interest for the entire period in advance. Prepare the journal entry that would be made to record this transaction and the adjustment for prepaid interest that should be recorded for the year ended December 31, 20X1. Omit descriptions. Round your answers to the nearest dollar.