Question
On January 1, 2011, Randa borrows $25,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest
| On January 1, 2011, Randa borrows $25,000 cash by signing a four-year, 7% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2011 through 2014. (Use Table B.3) |
| Prepare the journal entries for Randa to record the loan on January 1, 2011, and the four payments from December 31, 2011, through December 31, 2014. (Round "PV Factor"to 4 decimal places and final answers to the nearest dollar amount. Omit the "$" sign in your response.) |
| Date | General Journal | Debit | Credit |
| Jan. 1, 2011 | (Click to select)Rent expenseNotes receivableAccounts payableCashInterest expenseNotes payableInterest payableAccounts receivable | ||
| (Click to select)Notes payableCashInterest payableNotes receivableAccounts receivableInterest expenseRent expenseAccounts payable | |||
| Dec. 31, 2011 | (Click to select)Interest payableNotes receivableNotes payableRent expenseInterest expenseCashAccounts payableAccounts receivable | ||
| (Click to select)Accounts payableNotes payableCashAccounts receivableInterest expenseNotes receivableInterest payableRent expense | |||
| (Click to select)CashInterest expenseNotes payableRent expenseAccounts receivableNotes receivableAccounts payableInterest payable | |||
| Dec. 31, 2012 | (Click to select)Rent expenseAccounts receivableInterest payableAccounts payableCashNotes payableNotes receivableInterest expense | ||
| (Click to select)Interest payableAccounts receivableNotes payableNotes receivableAccounts payableCashInterest expenseRent expense | |||
| (Click to select)Interest expenseNotes payableNotes receivableRent expenseAccounts payableCashInterest payableAccounts receivable | |||
| Dec. 31, 2013 | (Click to select)Rent expenseAccounts receivableCashInterest payableAccounts payableNotes payableNotes receivableInterest expense | ||
| (Click to select)Notes receivableCashRent expenseAccounts payableAccounts receivableInterest expenseInterest payableNotes payable | |||
| (Click to select)Accounts receivableInterest expenseRent expenseNotes payableAccounts payableCashNotes receivableInterest payable | |||
| Dec. 31, 2014 | (Click to select)Notes receivableAccounts receivableAccounts payableNotes payableInterest expenseCashRent expenseInterest payable | ||
| (Click to select)Accounts receivableAccounts payableInterest payableInterest expenseNotes payableNotes receivableCashRent expense | |||
| (Click to select)Interest expenseAccounts payableCashAccounts receivableNotes receivableNotes payableRent expenseInterest payable | |||
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
