Arvan Patel is a customer of Bank’s Hardware Store. For Mr. Patel’s latest purchase on January 1, 2018, Bank’s Hardware issues a note with a principal amount of $480,000, 13% annual interest rate, and a 24-month maturity date on December 31, 2019. Record the journal entries for Bank’s Hardware Store for the following transactions.
A. Note issuance
B. Subsequent interest entry on December 31, 2018
C. Honored note entry at maturity on December 31, 2019.
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Principles of Management