How do I record this transaction? The loan amount is 60,000 with annual percentage rate of 5%. Borrowed $60,000 loan on December 19, 2017. Issued check on December 29, 2017.

financial statements Issued check to First American Bank and Trust for $13,000 for partial payment on the bank note, which included no payment for interest. The terms on the back of the bank note stipulate that prepayments can be made without early payment penalty. For purposes of the year-end adjusting entry for accrued interest that you will be making later, assume that this payment was not received by the bank until January 2, 2018. 29