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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.

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

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