Idealist Company secured a one-year bank loan of $4,000,000 on October 1, 2017. The loan was discounted at 10%.

The entity signed a note for the loan and pledged $5,000,000 of its accounts receivable as collateral for the same. The accounting period of the entity ends on December 31.

Required:

1. Prepare the journal entries, including the adjustment from the date of loan up to date of maturity.

2. Statement of presentation of the bank loan with adequate disclosure on December 31,2017.