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AAA Steak Restaurant has a December 31st year end. On January 1st, 2021, AAA took out a $50,000 bank loan to buy new kitchen equipment.

AAA Steak Restaurant has a December 31st year end. On January 1st, 2021, AAA took out a $50,000 bank loan to buy new kitchen equipment. The loan has an interest rate of 10% annually. The loan and the interest will be paid at the end of five years. What adjusting entry is necessary on December 31st, 2021?

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