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For each of the following transactions, show how the expense will be recorded using the matching principle.
Transactions
1. Purchase a one year software licence for 6,000 on November 1 of current accounting year which ends on December 31.
The payment was made in full on November 1 of the current year
2 Paid 1,300 of interest expense for the month of December of the current accounting year which ends on December 31 on January 3rd of the next year.
Interest is paid at the start of each month to cover the interest expense incurred for the previous month.
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