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Havier Corporation borrows $1 million from a bank on September 1, Year 1, by signing a 6
percent, nine-month note for the amount borrowed plus accrued interest due nine months later on
June 1, Year 2. Which of the following is recorded on June 1, Year 2?
A. $25,000 debit to Interest Payable
B. $1,045,000 credit to Cash
C. $20,000 credit to Interest Expense
D. $1,045,000 debit to Note Payable

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