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On March 1, Holden Corporation borrows $60,000 from Old York Bank by signing a 6-month, 5%, interest-bearing note. Interest is due at maturity.
Instructions
Problem (a) Prepare the entry on March 1 when the note was issued.
Problem (b) make any adjusting entries necessary on June 30 in order to prepare the semi-annual financial statements. Assume no other interest accrual entries have been made.
Problem (c) Prepare the entry to record payment of the note at maturity.
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