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On September 1, 2021, Verizon Corporation borrowed $15 million to fund expansion of its new 5G network. Bank of America made this short-term, 10-month loan
On September 1, 2021, Verizon Corporation borrowed $15 million to fund expansion of its new 5G network. Bank of America made this short-term, 10-month loan to Verizon at an interest rate of 12%. Interest is payable on the loans maturity date of June 30, 2022.
Please show any calculations that are needed when responding to the following questions.
- Provide the journal entry that Verizon would have recorded on Sept. 1, 2021 when the loan was first issued.
- Provide the adjusting journal entry for the loan that Verizon would have recorded at the end of its fiscal year on Dec. 31, 2021.
- Provide the journal entry that Verizon should record on June 30, 2022 when the loan was matures.
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