On January 1, 2018, Nantucket Ferry borrowed $14,000,000 cash from Bank One and issued a four-year, $14,000,000,

Question:

On January 1, 2018, Nantucket Ferry borrowed $14,000,000 cash from Bank One and issued a four-year, $14,000,000, 6% note. Interest was payable annually on December 31. Prepare the journal entries for both firms to record interest at December 31, 2018.