Paid in cash until the note matures


Max Company purchased equipment on November 1, 2010 and gave a 16-month, 12% note with a face value of $5,000. Interest will not be paid in cash until the note matures. The December 31, 2010 adjusting entry is ?

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Accounting Basics: Paid in cash until the note matures
Reference No:- TGS083735

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