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STU Inc. borrowed $25,000 from a bank on August 1, 2023, at an annual interest rate of 6%. Record the journal entry for the borrowing

  1. STU Inc. borrowed $25,000 from a bank on August 1, 2023, at an annual interest rate of 6%. Record the journal entry for the borrowing and the monthly adjusting entry for interest expense. Discuss the impact on the company’s financial position.

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