Entries for installment note transactions

On January $1$ of Year $1,$ Bryson Company obtained a $$32,000,4-$year, $11\%$ installment note from Campbell Bank. The note requires annual payments of $$10,314,$ beginning on December $31$ of Year $1.$ to the nearest whole dollar. If an amount box does not require an entry, leave it blank.

Amortization of Installment Notes

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T Check My Work interest.

After the final payment, the carrying amount on the note is zero, indicating that the note has been paid in full.

Learning Objective $4.$

Remember to review the reporting of current and long$-$term liabilities.

b$.$ Journalize the entries for the issuance of the note and the four annual note payments. If an amount box does not require an entry, leave it blank.

Year $1$ Jan. $1$

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Year $1$ Dec. $31$

Interest Expense

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