On March 1, Azalea Golf borrows $30,000 on a 6-month, 6% note from Augusta Bank. Assume interest

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On March 1, Azalea Golf borrows $30,000 on a 6-month, 6% note from Augusta Bank. Assume interest is paid at the maturity of the note.
Required
Prepare
(a) The journal entry to record the receipt of cash from the note
(b) The journal entry to record the accrual of interest if Azalea prepares financial statements on June 30
(c) The journal entry to record the repayment of the note at maturity.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
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Financial ACCT2

ISBN: 978-1111530761

2nd edition

Authors: Norman H. Godwin, C. Wayne Alderman

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