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Wellington Company had the following transactions involving notes payable

Accounting

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Wellington Company had the following transactions involving notes payable.

Nov. 1, 2011         Borrows $90,000 from Olathe State Bank by signing a 3-month, 10% note.

Dec. 31, 2011       Prepares the adjusting entry.

Feb. 1, 2012          Pays principal and interest to Olathe State Bank.

Instructions

Prepare journal entries for each of the transactions.