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3 points On January 1, 2011, Mush Co took out a 3-year loan from a bank for $850 in principal (amortizing debt). Mush Co. must
3 points On January 1, 2011, Mush Co took out a 3-year loan from a bank for $850 in principal (amortizing debt). Mush Co. must make payments semi-annually (two times per year). The stated interest rate on the loan equaled the market interest rate. The following information is from the loan's amortization table: Payment amount Interest portion Principal portion Payment 1/1/2011 6/30/2011 12/31/2011 6/30/2012 Principal remaining $850 $718.6 $5833 $156.9 $156.9 $25.5 $21.6 $131.4 $1353 Which three of the following lines comprised the journal entry for the first payment? Dr.Debt Payable $583.3 Dr.Debt Payable $131.4 Dr. Interest Expense $25.5 Cr. Interest Expense $21.6 Cr Cash $131.4 Cr. Cash $156,9 Cr. Debt Payable $135.3 Cr. Interest Payable $25,5 Dr. Cash $25.5 Next
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