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On June 1, Padilla Pasta borrows $80,000 from First Bank on a six-month, $80,000, 12 percent note.
Instructions
(a) Prepare the entry on June 1.
(b) Prepare the adjusting entry on June 30.
(c) Prepare the entry at maturity (December 1), assuming monthly adjusting entries have been made through November 30.
(d) What was the total financing cost (interest expense)?
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