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Promissory note journal entry examples

04/10/2021 Client: muhammad11 Deadline: 2 Day

Problem 8-2B Record notes payable and notes receivable (LO8-2)

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Eskimo Joe’s, designer of the world’s second best-selling T-shirt (just behind Hard Rock Cafe), borrows $19.9 million cash on November 1, 2021. Eskimo Joe’s signs a six-month, 9% promissory note to Stillwater National Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.

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