Question: Adjusting Entries 1. The annual interest rate on a note payable is 6.25%; the note has been outstanding for a whole year. Note payable amount

Adjusting Entries

1. The annual interest rate on a note payable is 6.25%; the note has been outstanding for a whole year. Note payable amount of $350,000

2. The insurance at the beginning of the year is prepaid for 5 years. ($25,0000 prepaid insurance) at the end of the current year, one year's worth has expired. Record the adjustment for the used-up insurance amount.

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