Prepare the Journal Entry for June 1st, and the journal entry to acrrue interest at year end. The effective interest method is used to amoritize bond premiums and discounts.

June 30th The company issues a 5-year notes payable with their bank for $100,000 and interest at an annual rate of 6%, Intecest is due on June 30th each year and the psincipal will be paid in full at the end of the 5 yeas pesiod. 100,000