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Entries for installment Note Transactions On January 1, Year 1. Wedekind Company issued a $47,000, 4-year, 9% installment note to Shannon Bank. The note requires

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Entries for installment Note Transactions On January 1, Year 1. Wedekind Company issued a $47,000, 4-year, 9% installment note to Shannon Bank. The note requires annual payments of $14,507, beginning on December 31, Year 1 Journalize the entries to record the following: Year 1 Jan 1 Issued the note for cash at its face amount Dec. 31 Pald the annual payment on the note, which consisted of interest of $4,230 and principal of $10,277 Year 4 Dec. 31 Paid the annual payment on the note, including $1,198 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 Year 1, Jan, 1 Cash Notes Payable 49,000 17.000 Feedback Check My Won Record the sunce by debiting Cush and crediting Notos Payabia Paid the annual payment on the note, which consisted of interest of $4,230 and principal of $10,277. If an amount box does not require an entry, leave it blank 2.115 X Year 1, Dec 31 Interest Expense Notes Payable Cash Notes Payable Cash Check my w The cash payment is the same in each year. The interest and principal repayment, however, changt each year. This is because the carrying amount (book value) of the note decreases each year as principal is repaid, which decreases the interest Anor the final payment, the carrying amount on the note is zero, indicating that the nota has been paid in full Paid the annual payment on the note, including $1,198 of interest. The remainder of the payment reduced the principal balance on the note. I an amount box does not require an entry, leave it blank. Year 4, Dec 31 interest Expense Notes Payable Cash Yecx My Work The cash payment is the same in each year. The interest and principal recayment, however, change each year is because the carrying amount (book Vw) of the note decrentes each year as principal is read, which decreases the interest After the final payment, the carrying amount on the note in zero, indicating that the nole has been paid in hul Freda Check My Partially correct

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