Jump Corporation borrowed $60,000 on December 1, year 1, by issuing a 2-month, 4 percent note payable to Service One Credit Union. The entire amount of the loan, plus interest, is due February 1, year 2.

a. & b.

Prepare the necessary adjusting entry for interest expense on December 31, year 1. Also, record the repayment of the loan plus interest on February 1, year 2.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)