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On August 1, 2021, Kelly Inc.purchased $1,350,000 of equipment by signing a 4-year, 2% note payable. Interest is payable annually starting Aug. 1, 2022 and the principle will be due at the end of the note term. Kelly Inc.'s normal long-term borrowing rate is 8%.
Required:
Question 1: Journal entries on Aug 2021 and Dec 2021.
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