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on 11/1 violets bagel shop purchased a building using a 24 month loan in the amount of $120,000 with an annual interest rate of 10%.

on 11/1 violets bagel shop purchased a building using a 24 month loan in the amount of $120,000 with an annual interest rate of 10%. interest is due quarterly and principal is due upon maturity. As of 12/31, no interest has been paid. How much interest must be accrued as an adjusting entry before the completing the financial statements?

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