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On February 1, Chopper Motorcycles Ltd

Question 117

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On February 1, Chopper Motorcycles Ltd.signed a 5%, twelve-month bank loan payable for $168,000 to help finance increases in inventory for the spring and summer season.Assuming no entries have been made previously for the interest on this loan, what is the required adjusting entry for the interest accrued to December 31? On February 1, Chopper Motorcycles Ltd.signed a 5%, twelve-month bank loan payable for $168,000 to help finance increases in inventory for the spring and summer season.Assuming no entries have been made previously for the interest on this loan, what is the required adjusting entry for the interest accrued to December 31?

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