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On November 1, 2010, Edwin, Inc., borrowed cash and signed a $60,000, one year note payable.Required:1. Compute the following items assuming (i) an interest bearing note at 12%,
(ii) a non interest bearing note discounted at 12%:a. Cash receivedb. Effective interest ratec. Interest expense for 2010
2. Prepare the journal entries for Edwin, Inc., under each case for 2010 and 2011.
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