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Wellington Company Had the Following Transactions Involving Notes Payable

Question 264

Essay

Wellington Company had the following transactions involving notes payable.
Nov. 1, 2017 Borrows $180,000 from Olathe State Bank by signing a 3-month, 10% note.
Dec. 31, 2017 Prepares the adjusting entry.
Feb. 1, 2018 Pays principal and interest to Olathe State Bank.
Instructions
Prepare journal entries for each of the transactions.

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