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Question - On August 1, 2021, Trico Technologies, an aeronautic electronics company, borrows $20.0 million cash to expand operations. The loan is made by First Banc Corp. under a short-term line of credit arrangement. Trico signs a six-month, 8% promissory note. Interest is payable at maturity. Trico's year-end is December 31.
Required -
1) Record the adjusting entry for interest.
2) Record the repayment of the note at maturity.
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