Gregor Corp. loaned $$25,000$ to Advent Group on January $1,2021$

The stated interest rate on the note was $10\%,$ but Advent, because of its credit history always had to

borrow at a rate of $12\%.($market rate$)$

The present value of the principle computed for $3$ periods at $12\%$ was $$17,795$ and the present value of

the interest payments was $$6,005.$

Prepare the journal entries:

to issue the note on January $1,2021$

adjusting entries at December $31$ of $2021,2022$ and $2023$

to record the receipt of payment of the note on its due date