On January 1, 2015, Tropical Paradise borrows $50,000 by agreeing to a 6%, six-year note with the

Question:

On January 1, 2015, Tropical Paradise borrows $50,000 by agreeing to a 6%, six-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $828.64 are due at the end of each month with the first installment due on January 31, 2015.

Required:
Record the issuance of the installment note payable and the first two monthly payments.