Coronado Ltd. needed funding to bridge the gap between paying its suppliers and collecting its receivables. As such, Coronado issued a $430,000, four-year, 10% note at face value to Easy Loan Bank on January 1, 2017, and received $430,000 cash. The note requires annual interest payments each December 31.

Prepare Coronados journal entries to record the note issuance.

Prepare Coronados journal entries to record the December 31, 2017 interest payment.