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Welcome to Just Answer,
Your intuition is correct.
You will want to record the cash activity (inflow/outflow) so your cash flow statement is correct and have a proper audit trail.
You would debit cash and credit long term loan payable for the proceeds
Debit shorty term loan payable credit cash.
This would have zero impact on your cash balance, but when you prepare your cash flow statement you will be able to see the extinguishment and the boarding of the long term note.
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