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Pharoah Lake Corp. issues a $ 624,000, 4-year, 6% note payable on March 31, 2021. The terms provide for fixed principal payments annually of $ 156,000.
Problem 1: Prepare the journal entries to record the note on March 31, 2021, and the first payment on March 31, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Problem 2: Show the balance sheet presentation of the current and non-current liability related to the note as at March 31, 2022.
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