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On March 1, Year 1, a company loans cash to another company and accepts a note in return.

The terms of the note are provided below.

Issue Date	March 1, Year 1
Principal	120,000
Rate	10%
Maturity Date	March 1, Year 4

Required:

Prepare the journal entry to be made when the company makes the loan and accepts the note in return.

Calculate the interest revenue to be recorded at the end of each year the note is outstanding.

Prepare the journal entries to accrue the interest receivable for each year the note is outstanding.

Prepare the journal entry to record receiving the cash at the note's maturity.

(Use cells A.2 to B8 from the given information above to complete this question. Hint: In your formulas, use references to cell B7 24 for the interest rate and cells B28 through B31 for the fraction of the year that the note was outstanding. Assume interest is 25 calculated as simple interest on the initial principal only.) 33 Requirement 3: Journal entry for accrued interest on December 31 of (a) Year 1, (b) Year 2, and (c) Year 3 34 (Use cells A2 to B8 from the given information above to complete this question.) (a) December 31, Year 1 (b) December 31, Year 2 (c) December 31, Year 3 Requirement 4: Journal entry for collection of note on March 1, Year 4 (Use cells A2 to B8 from the given information above to complete this question.) \begin{tabular}{|llll|} \hline \multicolumn{1}{c}{ Account } & Debit & & Credit \\ \hline Cash & & & \end{tabular} (Use cells A.2 to B8 from the given information above to complete this question. Hint: In your formulas, use references to cell B7 24 for the interest rate and cells B28 through B31 for the fraction of the year that the note was outstanding. Assume interest is 25 calculated as simple interest on the initial principal only.) 33 Requirement 3: Journal entry for accrued interest on December 31 of (a) Year 1, (b) Year 2, and (c) Year 3 34 (Use cells A2 to B8 from the given information above to complete this question.) (a) December 31, Year 1 (b) December 31, Year 2 (c) December 31, Year 3 Requirement 4: Journal entry for collection of note on March 1, Year 4 (Use cells A2 to B8 from the given information above to complete this question.) \begin{tabular}{|llll|} \hline \multicolumn{1}{c}{ Account } & Debit & & Credit \\ \hline Cash & & & \end{tabular}

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