Rock Company borrowed $200,000 from Bank on December 1st. The interest rate is 10% and the note is due in nine months. Interest is payable when the note is due. Prepare the December adjusting entry. Prepare the journal entry when the loan is repaid on the due date. Rock Company purchased equipment for 480,000 on December 1st. The equipment has a useful life of 5 years. Prepare the December adjusting entry.