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On November 1, 2016 Branch Corporation converted a $10,000 account payable owing to Tree Corp. to a note payable bearing interest at 10% per year due on January 31, 2017.
Required:
- Record the November 1, 2016 transaction in the records of Branch.
- Record the adjusting entry needed on December 31, 2016.
- Record the journal entry for the January 31 payment.
- Record the above journal entries in the records of Tree Corp.
Provide descriptions for journal entries. General ledger account numbers are not necessary.
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