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Nova Corporation hired a new product manager and agreed to provide her a $20,000 relocation loan on a six-month, 7 percent note. Prepare journal entries to record the following transactions for Nova Corporation. Rather than use letters to reference each transaction, use the date of the transaction.
a. The company loans the money on January 1, 2013.
b. The new employee pays Nova the full principal and interest on its maturity date.
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