Water Inc. borrows $61,800 from a Company on July 1, 2021, signing an 8%, one-year note payable.

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Water Inc. borrows $61,800 from a Company on July 1, 2021, signing an 8%, one-year note payable. Interest is to be paid at maturity.

a) Prepare the journal entry for Water Inc. to record the receipt of the proceeds of the note.

b) Prepare the journal entry for Water Inc. to record the accrued interest at December 31, assuming adjusting entries are made only at year-end.

c) Prepare the journal entry for Water Inc. to record the payment of the note at maturity. (July 1, 2022)

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College Accounting A Practical Approach

ISBN: 978-0133133233

12th edition

Authors: Jeffrey Slater

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Posted Date: Feb 23, 2022 08:40 AM

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Water Inc. borrows $61,800 from a Company on July 1, 2021, signing an 8%, one-year note payable.

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College Accounting A Practical Approach

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