On May 1, the company borrowed $75,000 from Bank of Salt Lake. The loan is for five

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On May 1, the company borrowed $75,000 from Bank of Salt Lake. 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 $75,000 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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Related Book For  answer-question

Financial Accounting

ISBN: 978-0324645576

10th edition

Authors: W. Steve Albrecht, James D. Stice, Earl K. Stice

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