Prepare marigold journal entries related to note receivable

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In an effort to raise extra cash for operating activities, the owner of Martinez Corporation arranged to borrow $27,600 from Marigold Ltd, a company that his wife owns. On March 1, Martinez signed a 6 month note payable at 2% interest. This rate of interest is a fair rate of interest.

Question 1: Prepare all of Marigold's journal entries related to the note receivable, assuming that Marigold's fiscal year-end is June 30 and that repayment of the note plus interest will occur on Sept 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Reference no: EM132538774

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