Which method is best for financing and why ?

  

A five-year loan from the Niagara Credit Union for $210,000. The interest rate on the loan will be 6% with annual payments each December 31" consisting of an equal amount of principal (ie. $42,000 each year) plus applicable interest expense. Bob would like to know what the journal entry is for the initial receipt of the loan as well as the first payment on December 31" of the current year.