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On May 1, Cartman Company borrows $100,000 from South Park Provincial Bank by signing a 6-month, 6%, interest-bearing note. Cartman's year end is August 31.
On May 1, Cartman Company borrows $100,000 from South Park Provincial Bank by signing a 6-month, 6%, interest-bearing note. Cartman's year end is August 31. Prepare the journal entries associated with the note payable on the books of Cartman Company for the following dates. May 1 Cash Notes Payable Aug 31 Interest Expense Interest Payable 4 4 4 Oct 31 (Entry for Payment of Notes Payable) Notes Payable = Cash Aug 31 Interest Expense Interest Payable Oct 31 (Entry for Payment of Notes Payable) Notes Payable Cash Oct 31 (Entry for payment of Interest Payable) Interest Payable= Cash " Oct 31 (Entry for Interest Expense payment) Interest Expense Cash 4 4
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