On December 31, Year 2, Bates Company paid $60,000 to Municipal Bank to pay off the face value of a discount note that Bates had issued one year earlier. Show the effects of the payment and recognition of Year 2 interest on the note.

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The Answer of On December 31, Year 2, Bates Company paid $60,000 to Municipal Bank to pay off the face value of a discount note that Bates had issued one year earlier. Show the effects of the payment and recognition of Year 2 interest on the note.

On December 31, Year 2, Bates Company Paid $60,000 to Municipal