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On Januar 1, 2015, Eagle borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2015 through 2018.
1. Prepare the journal entries for Eagle to record the loan on January 1, 2015, and the four payments from December31, 2015, through December 31, 2018.
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