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Problem - EasyFly Airlines borrows $100,000 from Bank of Le Bouveret on September 1st, 20x5, signing a 6%, six-month note for the amount borrowed plus accrued interest due six months later on March 1, 20x6.
Required -
1) Calculate EasyFly's interest expense.
2) For EasyFly Airlines, prepare journal transactions on the following dates:
September 1, 20x5
December 31, 20x5
March 1 , 20x6
3) For the Bank of Le Bouveret, prepare journal entries on the following dates:
September 15, 20x5
December 31s, 20x5
March 1, 20x6
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