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Interest Payable
Billings Company takes out a 12%, 90-day, $100,000 loan with First National Bank on March 1, 2014.
Required
1. Prepare the journal entry on March 1, 2014.
2. Prepare the adjusting entries for the months of March and April 2014.
3. Prepare the entry on May 30, 2014, when Billings repays the principal and interest to First National.
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