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Sarasota, Inc. issued a $80,000, 4-year, 12% note at face value to Flint Hills Bank on January 1, 2017, and

received $80,000 cash. The note requires annual interest payments each December 31.


Prepare Sarasota's journal entries to record (a) the issuance of the note and (b) the December 31 interest payment.

Top Answer

(a) January 1, 2017 Cash Debit $80,000 Notes payable Credit $80,000 (To... View the full answer

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