Question
On January 1, Dennis Co. borrowed $85,000 cash by signing a 7% installment note that is to be repaid with four annual year-end payments of
On January 1, Dennis Co. borrowed $85,000 cash by signing a 7% installment note that is to be repaid with four annual year-end payments of $25,000, the first of which is due on December 31, Year 1.
(a) Prepare the company's journal entry to record the note's issuance. (1 point)
(b) Prepare the journal entries to record the first installment payment. (1 point)
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Intermediate Accounting
Authors: James D. Stice, Earl K. Stice, Fred Skousen
17th Edition
032459237X, 978-0324592375
