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Ellison Co. issued a $50,000 face value discount note to National Bank on July 1, 2013. The note had a 10 percent discount rate and a one year term to maturity.
Required:
Prepare general journal entries for the following:
a. The issuance of the note on July 1, 2013.
b. The adjustment for accrued interest at the end of the year, December 31, 2013.
c. Recording interest expense for 2014 and repaying the principal on June 30, 2014.
1. which of the following statements is most likely true for jared a typical individual taxpayer in the 35 tax
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