XYZ Company has a December 31 year end. Prepare any required year end adjusting Journal entry Date is required but explanations are NOT required. On January 1, the business took out a five-year $500,000 bank loan with an annual interest rate of 3%. Interest expense for each year (January through December ) is paid once a year, on January 2 of the following year. Record the accrued interest expense at the end of the year