2. On July 1, Year 37, Naboo National Bank loaned $63,500 to Vader Dynamics for 24 months at an interest rate of 5.0%r. Wabash will pay the interest for year 37 on December 31, Year 37, it will pay interest for Year 38 on December 31, Year 38, and it will pay the interest dues for Year 39 and will repay all principal at maturity on June 30, Year 39.

   Required:

   1. Prepare Naboo National Banks Journal entry to record the making of the loan, and the corresponding entry recorded by Vader Dynamics.

   2. Prepare Naboo National Banks journal entry to record interest income for Year 37, and the Vader Dynamic corresponding entry to record interest expense.

   3. Prepare Naboo Banks journal entry to record its receipt of interest and principal upon the loans maturity, and the corresponding entries made by Vader Dynamics to record the principal and interest payment.