ABC borrows money from a local bank on July 1, 2016. The lo…
ABC borrows money from a local bank on July 1, 2016. The loan is for $100,000 and the annual interest rate is 12% with repayment of the loan and interest scheduled for June 30, 2017. Assuming that the only entries made prior to June 30, 2017 were the entries on July 1, 2016 to record the origination of the loan and on December 31, 2016 to record the accrual of interest on the loan, what is the entry necessary for ABC to record the repayment of the loan and interest on June 30, 2017.