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4100 Saved On January 1, MM Co, borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual
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Answer #1
1
Debit Credit
Jan 01 Cash 340000
      Notes payable 340000
2
Interest expense 27200 =340000*8%
Principal Reduction 57955 =85155-27200
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