Use the data in Exercise 14-25 to prepare journal entries that KEC Environmental Corp. would make to record the loan on December 31, 2020, and the four payments starting on December 31, 2021, through the final payment on December 31, 2024.

Exercise 14-25

Transcribed Image Text:

(C) (A) (B) Debit (D) Credit (E) Debit Beginning Interest Notes Ending Cash Balance Expense 8% x (A) Payable Balance Prior (E) Period Ending (D) – (B) (B) + (C) (A) – (C) $60,000 $4,800 $18,482 $23,282 $41,518 Dec. 31/20.. Dec. 31/21. 23,282 21,557 41,518 3,321 19,961 21,557 Dec. 31/22 1,725 21,557 23,282 -0- $9,846 $60,000 $69,846 Increasing Principal Amounts Decreasing Accrued Interest Total Principal Payments Interest $1,725 2022 $21,557 2021 $19,961 $3,321 $18,482 $4,800 2020 $15,000 $20,000 $0 $5,000 $10,000 $25,000 Payment Pattern End of Year