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Instructions: Identify the following. Be as specific as possible, and include names, dates, and relevant facts as appropriate. Be sure to explain the significance of the person or term.
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Proceeds of the Note
The total amount of money received from issuing a note payable, including the principal and any interest.
Accrued Interest
The interest that has accumulated on a loan or bond but has not yet been paid.
Interest Income
Revenue received from investments in financial instruments like bonds, savings accounts, and loans, where the investor receives payment for lending money.
Reversing Entry
A reversing entry is an accounting method used to reverse or cancel out adjusting entries made in the previous accounting period, simplifying the recording of future transactions.
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