This is a start up business w/ made up financials. The transaction is:

Borrowed money from First National Bank (2 year note, you decide the interest rate).

Now if I were to write out this transaction, would I write.
Borrowed $20,000 from First National Bank with a 20% interest rate.

I would debit cash for 20 grand, and credit notes payable 20 grand. Then I would debit Interest Expense for 4 grand and credit cash for 4 grand.

does this sound right?

Thanks!!