On January 1, 2018, Tropical Paradise borrows $31,000 by agreeing to a 6%, six-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $513.76 are due at the end of each month with the first installment due on January 31, 2018.

Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Journal Entry Worksheet

Record the issuance of a note payable.

Record the first monthly payment.

Record the second monthly payment.

Date

General Journal

Debit

Credit

January 01, 2018

*Enter debits before credits