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On January 1, the first day of the fiscal year, Shiller Company borrowed $86,000 by giving a seven-year, 8% installment note to Soros Bank. The
On January 1, the first day of the fiscal year, Shiller Company borrowed $86,000 by giving a seven-year, 8% installment note to Soros Bank. The note requires annual payments of $16,518, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $6,880 and principal repayment of $9,638.
A. | Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles.
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B. | Explain how the notes payable would be reported on the balance sheet at the end of the first year. |
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