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Notes Payable and Interest Accrual On September 1, 2022, XYZ issued a note to the bank for $25,000. The note is due September 1, 2023

Notes Payable and Interest Accrual

On September 1, 2022, XYZ issued a note to the bank for $25,000. The note is due September 1, 2023 with interest at 7.5%.

Sept 1,2022:

Dec 31, 2022:

Sept 1, 2023:

Short answer:

1. Who is the "issuer" of a note?

2. Why is an interest accrual needed at fiscal year-end and what purpose does it serve?

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