On May 1, the company borrowed $50,000 from Bank of Weber. The loan is for five years

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On May 1, the company borrowed $50,000 from Bank of Weber. The loan is for five years and bears an annual interest rate of 9%. Interest on the loan is to be paid in cash each year on April 30; the $50,000 loan amount is to be repaid in full after five years. Make the journal entry necessary on the company’s books to record the receipt of this loan on May 1.

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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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