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Company A borrows $100,000 from Company Z on July 1, 2021. The loan is a 1 year loan with repayment due on June 30, 2022.

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Company A borrows $100,000 from Company Z on July 1, 2021. The loan is a 1 year loan with repayment due on June 30, 2022. The annual interest rate for the loan is 12%. Assuming the appropriate adjusting entry was made by Company A on December 31, 2021 to record the interest expense for the first 6 months of the loan, what is the entry that Company A makes on June 30, 2022 to reflect the payment to Company Z when the loan becomes due (assume no other entries have been made in 2022) Debit Loan Payable $100,000 Debit Interest Expense $12,000 Credit Cash $112,000 Debit Loan Payable $100.000 Debit Interest Expense $6,000 Debit interest Payable $6,000 Credit Cash $112,000 Debit Loan Payable $100,000 Debit Interest Payable $12,000 Credit Cash $112,000 Debit Loan Payable $100,000 Credit Cash $100,000

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