I'm reading through this and I see your writing a check to pay it off, but I don't want to do this since that isn't the reality.  A bank wrote a check and I just need to replace one loan with another.  I see an old journal entry when I did this before with the help of an accountant, but I'm not sure I fully understand it.  I want to get rid of the previous loan and not write a check.  I don't want those funds to go against my banking