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Prepare the General Journal Entry
2. The $450,000 note payable to a local bank was originally issued on April 1, 2021. It has an
interest rate of 7 percent and matures on April 1, 2025. Interest is payable quarterly on January 1,
April 1, July 1, and October 1. Interest on this note has been paid and recorded through October
1, 2022. This note is collateralized by the equipment purchased in 2021

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