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question moss county bank agrees to lend the sandhill co 635000 on january 1 sandhil 4293528

Question

Moss County Bank agrees to lend the Sandhill Co. $635000 on January 1. Sandhill Co. signs a $635000, 6%, 9-month note. The entry made by Sandhill Co. on January 1 to record the proceeds and issuance of the note is

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Interest Expense

28575

 

Cash

606425

 

     Notes Payable

 

635000

 

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