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On 1/1/X1, Galasso Corp. borrowed $460,000 by agreeing to a 10%, 5-year installment note with the bank. The note's proceeds will eventually be used to

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On 1/1/X1, Galasso Corp. borrowed $460,000 by agreeing to a 10%, 5-year installment note with the bank. The note's proceeds will eventually be used to purchase a building. The journal entry to record the note is already shown the journal below. The note will be paid back in nine equal annual installment payments of $ 121,340 on December 31 of each year beginning December 31, 20X1. Required: Using the above information, prepare the journal entries to record the first and second installment payments due on 12/31/X1 and 12/31/X2, respectively. Note: Round all calculations to the nearest whole dollar. Do not use currency symbols, commas or decimal points in your responses. Date Account Name Debit Credit 1/1/X1 Cash 460,000 Note Payable 460,000 12/31/X1 Interest Expense - 46000 Note Payable - 75340 Cash 121340 12/31/X2 Interest Expense - 38466 Note Payable 82874 Cash 121340 fware.ncsu.edu

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