Daniels Consulting believes the company will need to borrow $303,970 in order to expand operations. Daniels consults the bank and secures a 6%, five-year note on March 1, 2017. Daniels must pay the bank principal in five equal installments plus interest annually on March 1.

1. Record the $300,000 note payable on March 1, 2017.

2. Record the entry to accrue interest due on the note at December 31, 2017.