Note payable with installment payments

3 journal entries 1/1/2022 Major Company took out financing to purchase a company car. The 3 year , $20,000 note payable had an interest rate of 8%. Payments of $627 were to be made monthly at the end of each month. Each installment payment includes principle and interest.

INSTRUCTIONS: Prepare the journal entry to issue the note. Prepare the journal entries for the first 2 monthly payments.

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