Please do the correct journal entry for the bank loan.

You: Thanks, I now have enough information to deal with the lease, but could you tell me about your bank loan? Indra: Well it's just a line of credit that we took out for $800,000 in September 20X1. The bank can demand repayment within 30 days, and they are currently charging us 4% interest which is the rate they have been charging us for over a year. You: When do you have to pay interest on the loan? Indra: Well you're supposed to pay annually but Wayne didn't do that. He just made one payment to the bank and that was on May 30, 20X3. He claimed that the payment was completely related to interest but I don't think that this makes sense. Luckily the bank only charges us simple rather than compound interest and because of the bond issue, we had enough money for the loan payment on May 30. EXHIBITI STATEMENT OF INCOME YEAR ENDED AUGUST 31 20X3 Draft 20X2 Audited Sales Cost of goods sold Gross profit $ 34,800,000 21,600,000 13,200,000 $ 25,600,000 16,000,000 9,600,000 Expenses: Wages General and administrative Depreciation expense Pension expense Warranty expense 2,400,000 2,827,200 1,500,000 560,000 180,000 7,467,200 1,400,000 1,912,000 1,200,000 320,000 4,832,000 4,768,000 (32,000) Income from operations Interest on bank loan Interest on bonds Bond redemption expense Net income before income tax 5,732,800 (232,000) (144,000) (371,632) 4.985,168 4,736,000 1,440,000 Tax expense - current Tax expense - deferred 1,676,000 84,000 1,760,000 $_2.976.000 1,440,000 $_3,545,168 Net income EXHIBITI STATEMENT OF FINANCIAL POSITION AUGUST 31 Assets 20X3 Draft 20X2 Audited $ Current assets: Cash Accounts receivable Inventory 176,000 1,240,000 2.238,000 3,654,000 272,000 760,000 1,420,000 2,452,000 Leased equipment Property, plant and equipment Accumulated depreciation - plant and equipment 265,600 16,000,000 (4,200,000) 12,065,600 $ 15,719,600 8,000,000 (2.700,000 5,300,000 7.752.000 $ Liabilities and Shareholders' Equity Current liabilities: Accounts payable Income taxes payable $ 291,000 $ 491,000 128,000 619,000 291,000 800,000 Noncurrent liabilities: Bonds payable Bank loan Lease liability Pension liability Deferred income tax 4,518,032 800,000 232,400 280,000 357,000 6,478,432 280,000 357,000 2,056,000 Shareholders' equity Common shares Retained earnings 120,000 9,121,168 9,241,168 $ 15,719,600 120,000 5,576,000 5,696,000 $_7,752,000