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Question - C&S Marketing (CSM) recently hired a new marketing director, Jeff Otos, for its downtown Minneapolis office. As part of the arrangement, CSM agreed on February 28, 2021, to advance Jeff $65,000 on a one-year, 7 percent note, with interest to be paid at maturity on February 28, 2022. CSM prepares financial statements on June 30 and December 31.
Required - Prepare the journal entries that CSM will make:
1. When the note is established.
2. Prepare the journal entries to accrue interest on June 30 and December 31.
3. To record the principal payment at the maturity date.
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