Flounder, Inc. issued a $$70,000,4-$year, $10\%$ note at face value to Flint Hills Bank on January $1,2025,$ and received $$70,000$ cash. The

note requires annual interest payments each December $31.$

Prepare Flounder's journal entries to record $($a$)$ the issuance of the note and $($b$)$ the December $31$ interest payment. $($If no entry is

required, select $"$No Entry" for the account titles and enter $O$ for the amounts. Credit account titles are automatically indented when the amount

is entered. Do not indent manually. List all debit entries before credit entries.$)$

No$.$

Date

Account Titles and Explanation

Debit

Credit

$($a$)$

$($b$)$