On the last day of October, Lake Company borrows $60,000 on a bank note for 60 days

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On the last day of October, Lake Company borrows $60,000 on a bank note for 60 days at 12 percent interest. Interest is not included in the face amount. Prepare the following journal entries:
(1) October 31, recording of note;
(2) November 30, accrual of interest expense (round to the nearest cent);
(3) December 30, payment of note plus interest.

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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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