Accounting Question

Topic: Bank Loan

Interest on a bank loan is 2.75% annually. Interest has to be paid on January 7, 2021; for 2020.

The entire amount of the loan ($4,000,000) was outstanding during the entire year. No payments

were made during the year. Of the bank loan, $1,000,000 is due June 30, 2021 with the

remainder due June 30, 2026.

Please prepare the adjusting Journal Entries for the year ended December 31, 2020