Vandelay Industries borrowed $75,000 on December 1, 2020 for 45 days at 6% interest. The note was in exchange for cash from the bank.

Required:

1. Prepare the journal entry on December 1, 2020 for the issuance of the note.

2. Prepare the interest adjustment entry on December 31, 2020.

3. Prepare the journal entry on January 15, 2021(the maturity date of the note) assuming Vandelay Industries honours their note with the bank.