On December $1,20$X$1,$ Jack's Juice Joint borrowed $$18,000$ from its bank in order to expand its operations. The firm issued a fourmonth, $12$ percent note for $$18,000$ to the bank and received $$17,280$ in cash because the bank deducted the interest for the entire period in advance.

In general journal form, show the entry that would be made to record this transaction and the adjustment for prepaid interest that should be recorded on the firm's worksheet for the year ended December $31,20$X$1.$

View journal entry worksheet

$\backslash$table$[[,$No$,$Date,General Journal,Debit,Credit$],[i,1,$December $1,201,$Cash,$17,280,],[,,$Notes payable,,$17,280],[i,2,\backslash$table$[[$December $31,],[201$