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Q . No . 4 California Company borrowed $ 1 2 0 , 0 0 0 from the issuance payable on August 1 , Year

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Q. No.4
California Company borrowed $120,000 from the issuance payable on August 1, Year 1. The note had a 7 percent ann interest and a one-year term to maturity.
Required
a. What amount of interest expense will California recogr ending December 31, Year 1?
b. Show how the December 31, Year 1, adjusting entry to accrued interest expense affects the accounting equation
c. What amount of cash will California pay for interest ex
d. What is the amount of interest payable as of Decemb
e. What amount of cash will California pay for interest e
f. What amount of interest expense will California recog
g. What is the amount of interest payable as of Decemb
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