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On July 1, 2021 Sierra borrowed $150,000 from a bank at a 12% annual interest rate for 4 years. Sierra is required to make 48
- On July 1, 2021 Sierra borrowed $150,000 from a bank at a 12% annual interest rate for 4 years. Sierra is required to make 48 equal monthly payments (due on the first day of each month starting with August 1, 2021) to repay the principal and interest on this installment loan. Nothing has been recorded for the loan in 2021. Make all entries necessary through Dec. 31, 2021. Sierra uses the effective interest method to amortize any discounts or premiums on investments and bonds payable
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