Business, 07.03.2020 04:42 hjohnsonn102010

1. Loan 1 is a 4%, 5-year balloon loan for $3,000,000 with interest due and paid annually on December 31. Drake records interest annually on December 31. Drake incorrectly recorded the journal entry for the Year 1 interest expense and payment as a debit to accrued interest payable and a credit to cash. Prepare the net journal entry to correct Year 1 and properly record the interest attributable to the loan as of and for the year ended December 31, Year 2.

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1. Loan 1 is a 4%, 5-year balloon loan for $3,000,000 with interest due and paid annually on Decembe...

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