You don't book interest until you pay it.  The loan principal is deducted as you pay it monthly.

Using your example:

Automobile Loan = $23,178.94 beginning balance

Payments are as follows:

Create check:

Reduce "Automobile loan" by loan principal amount (say $500.00)

Increases "Loan Interest"  (expense account) by interest for that month (say $25.00)

Check total = $525.00

Hope this is what you are looking for.