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On August 31, 2020, Pine Company issued a 9-month, 12% note payable to National Bank in the amount of $180,000. Interest is d

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Answer #1

Journal entry

No Date General Journal Debit Credit
a Aug 31,2020 Cash 180000
Notes payable 180000
b Dec 31,2020 Interest expense (180000*12%*4/12) 7200
Interest payable 7200
c May 31,2021 Notes payable 180000
Interest payable 7200
Interest expense 9000
Cash 196200
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