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Abardeen Corporation borrowed $101,000 from the bank on October 1, Year 1. The note had an 4 percent annual rate of interest and matured on
Abardeen Corporation borrowed $101,000 from the bank on October 1, Year 1. The note had an 4 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on the maturity date. Required: a. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. c. What amount of total liabilities was reported on the December 31, Year 1, balance sheet? Note: Do not round intermediate calculations. Round your answer to the nearest dollar amount. d. What total amount of cash was paid to the bank on March 31, Year 2 , for principal and interest? e. What amount of interest expense was reported on the Year 2 income statement? Note: Do not round intermediate colculations. Round your answer to the nearest dollar amount
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