A corporation borrowed $30,000 as a small business loan from a local bank in 2018. The loan isan 'interest only' at a fixed rate of 8% per year. A balloon payment of the principal will bedue in 5 years. The annual interest payment is due on the 31st of December.

Find the accrued interest based on the interest rate x loan amount x time of interest period.

What is the journal entry for this transaction?