Help with this accounting problem?

On January 2nd California Inc. burrows $12,500 cash on a note payable from Silverstein with terms of 90 days, 12%. California Inc. and Silverstein lenders uses a 360 day year for interest calculations. California Inc. makes adjusting entries at the end of each calendar quarter. Journalize the initiation of the loan, the recognition of interest expense for the quarter and the payment of the note on its due date.