On December 31, 2019, Horizons Bank extends a loan to Begley Company and receives in exchange a 5 year, $50,000 zero-interest bearing note. The market rate for a similar note is 6%. Using this information, answer the following questions:

Prepare the journal entry made by Horizons Bank to record the intial issuance of the note on December 31, 2019:

12.31.19 _ _________________________________

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Prepare the journal entry made by Horizons Bank to record the interest on the note on December 31, 2020:

12.31.20 _ _________________________________

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