Instructions On the first day of the fiscal year, a company issues $85,000, 6%, five-year installment notes that have annual payments of $20,179. The first note payment consists of $5,100 of interest and $15,079 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. b. Journalize the first annual note payment Chart of Accounts CHART OF ACCOUNTS General Ledger < ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 516 Cash Short and Over 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense E23 Danni Evnanna. Chart of Accounts 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 541 Bad Debt Expense 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock Chart of Accounts 241 Notes Payable 251 Bonds Payable 2 Discount on Bonds Payable 253 Premium on Bonds Payable 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends General Joumal a. Joumalize the entry to record the issuance of the installment notes on January 1. DATE DESCRIPTION b: Journalize the first annual note payment on January 1. JOURNAL PAGE 10 ACCOUNTING EQUATION POST REF DEBIT CREDIT ASSETS LABILITIES EQUITY PAGE 15 ACCOUNTING EQUATION JOURNAL DATE DESCRIPTION POST REF DENT CREDIT ASSETS Check My Work 3 more Check My Work uses remaining LIABILITIES EQUITY Previous Next