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Question - On September 1, 2019, Central Perk borrowed $645,000 from University Federal Credit Union. The loan has an 9 year term and a 6% interest rate. The agreement for the loan is that you will make payments every six months.
Record the journal entry for the original loan transaction on September 1, 2019.
Record the journal entry on December 31, 2019, to recognize the interest accrued.
Accrual and cash accounting.
A new skating rink is going to be built in the village of Nobel for $5.2 million. What transaction price should the company use to recognize revenues
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