Twilight Co. has a note payable already on the books its a 12-year, 6% interest-bearing note that is next due to be paid on 11/1/22. Part of the principle is payable annually on November 1 in equal $5,000 installments in addition to the years interest. The last payment of interest and principle was paid on 11/1/21 and it was booked on that date.

Notes Payable has a $55,000 credit balance of the Preliminary Trial Balance, and $60,000 credit balance on the Post Closing Trial Balance.

Prepare end of year adjusting entries, corrections, and any other necessary entries necessary to prepare accurate financial statements.