Question
Entries for Installment Note Transactions On January 1 of 20Y2, Hebron Company issued a $39,000, 4-year, 10% installment note to Ventsam Bank. The note requires
Entries for Installment Note Transactions
On January 1 of 20Y2, Hebron Company issued a $39,000, 4-year, 10% installment note to Ventsam Bank. The note requires annual payments of $12,303, beginning on December 31 of 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 $3,900 and principal of $8,403. |
20Y5 | |
Dec. 31 | Paid the annual payment on the note, which included interest of $1,119. The remainder of the payment reduced the principal balance on the note. |
Issued the note for cash at its face amount.
Year 1 Jan. 1 | |||
Paid the annual payment on the note, which consisted of interest of $3,900 and principal of $8,403. If an amount box does not require an entry, leave it blank.
Year 1 Dec. 31 | |||
Paid the annual payment on the note, which included interest of $1,119. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank.
Year 4 Dec. 31 |
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