Entries for Installment Note Transactions

On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of $43,830, beginning on December 31, 20Y2.

Journalize the entries to record the following:

20Y2
Jan. 1.	Issued the note for cash at its face amount.
Dec. 31.	Paid the annual payment on the note, which consisted of interest of $14,000 and principal of $29,830.
20Y5
Dec. 31.	Paid the annual payment on the note, included $6,253 of interest. The remainder of the payment reduced the principal balance on the note.

Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank.

20Y2 Jan. 1		fill in the blank dbfe29f9f019038_2	fill in the blank dbfe29f9f019038_3
		fill in the blank dbfe29f9f019038_5	fill in the blank dbfe29f9f019038_6

Paid the annual payment on the note, which consisted of interest of $14,000 and principal of $29,830. If an amount box does not require an entry, leave it blank.

20Y2 Dec. 31		fill in the blank 35a716f45f91ffc_2	fill in the blank 35a716f45f91ffc_3
		fill in the blank 35a716f45f91ffc_5	fill in the blank 35a716f45f91ffc_6
		fill in the blank 35a716f45f91ffc_8	fill in the blank 35a716f45f91ffc_9

Paid the annual payment on the note, included $6,253 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank.

20Y5 Dec. 31		fill in the blank fc3d5b00803f047_2	fill in the blank fc3d5b00803f047_3
		fill in the blank fc3d5b00803f047_5	fill in the blank fc3d5b00803f047_6
		fill in the blank fc3d5b00803f047_8	fill in the blank fc3d5b00803f047_9