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Notes Payable and Interest
On July 1, 2014, Jo's Flower Shop borrowed $25,000 from the bank. Jo signed a ten-month, 8% promissory note for the entire amount. Jo's uses a calendar year-end.
Required
1. Prepare the journal entry on July 1 to record the issuance of the promissory note.
2. Prepare any adjusting entries needed at year-end.
3. Prepare the journal entry on May 1 to record the payment of principal and interest.
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On January 1, 2009, the Baker Corporation issued $100,000 of five year bonds due December 31, 2013, for $103,604.79 less bond issue costs of $3,000.
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weekmachine hoursoverhead cost168 1190262 1004372nbspnbspnbsp 918446nbspnbspnbsp 710594 1025648nbspnbspnbsp 965answer
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