Question: Candleton borrowed cash, signing a two-year, interest-bearing note payable with a face value of $8,000 and an effective interest rate of 8 percent. Interest payments

Candleton borrowed cash, signing a two-year, interest-bearing note payable with a face value of $8,000 and an effective interest rate of 8 percent. Interest payments on the note are made annually.

Provide the journal entire’s that would be recorded over the life of the note, assuming the following stated interest rates:

(a) 8 percent

(b) 0 percent

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