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30 October, 02:26

On November 1, 2021, Aviation Training Corp. borrows $51,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable at maturity. Aviation's year-end is December 31. Required: 1.-3. Record the necessary entries in the Journal Entry Worksheet below. Record the issuance of note. Record the adjustment for interest. Record the repayment of the note at maturity.

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  1. 30 October, 02:50
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    The Journal entries are as follows:

    1. Issuance of note:

    Cash A/c Dr. $51,000

    To Note payable $51,000

    (To issuance of note)

    2. Adjustment for interest:

    Interest expense ($51,000 * 6% * 2/12) A/c Dr. $510

    To Interest payable A/c $510

    (To record the adjustment for interest)

    3. Repayment of note:

    Note payable A/c Dr. $51,000

    Interest payable A/c Dr. $510

    Interest expense ($51,000 * 6% * 1/12) A/c Dr. $255

    To cash A/c $51,765

    (To record the repayment of the note at maturity)
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