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On December 31, 2014, Morgan Corp. makes a loan to Marie Co. and receives in exchange...

On December 31, 2014, Morgan Corp. makes a loan to Marie Co. and receives in exchange a four-year, $50,000 note bearing interest at 7 percent annually on December 31. The market rate of interest for a note of similar risk is 6 percent.  

What journal entry should Morgan Corp. make on December 31, 2014?

What journal entry should Morgan Corp. make on December 31, 2016?

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Journal Entries:

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