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On November 1, 2012, Aviation Training Corp. borrows $50,000 cash from Community Savings and Loan. Aviation Training signs a three-month, 6% note payable. Interest is payable at maturity. Aviation’s year-end is December 31.

Section Break Difficulty: Medium  
Exercise 8-2 Record notes payable [LO2] Learning Objective: 08-02 Account for notes payable and interest expense.  

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