(Solution) - On May 1 the company borrowed 75 000 from Bank of -(2025 Original AI-Free Solution)

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On May 1, the company borrowed $75,000 from Bank of Salt Lake. The loan is for five years and bears an annual interest rate of 9%. Interest on the loan is to be paid in cash each year on April 30; the $75,000 loan amount is to be repaid in full after five years. Make the journal entry necessary on the company's books to record the receipt of this loan on May 1.