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On January 1, a company borrowed $50,000 cash by signing a 7% installment note that is to be repaid in five annual payments of $12,195

On January 1, a company borrowed $50,000 cash by signing a 7% installment note that is to be repaid

in five annual payments of $12,195 on December 31^st of each year.

Required:

Prepare the journal entry to record the first and second installment payment.

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