On the first day of the fiscal year, a company issues $85,000, 6 , five year installment notes that have annual payments of $20,179 The first note payment consists of $5,100 of interest and $15,079 of principal repayment a Journalize the entry to record the issuance of the installment notes on January 1, 2017 Refer to the Chart of Accounts for exact wording of account titles b Journalize the first annual note payment on January 1, 2018 Refer to the Chart of Accounts for exact wording of account titles Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid In Capital in Excess of Par Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid In Capital in Excess of Par Preferred Stock 331 Paid In Capital from Sale of Treasury Stock 340 Retained Earnings 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 516 Cash Short and Over 522 Office Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Repairs Expense 535 Rent Expense 536 Insurance Expense 537 Office Supplies Expense 541 Bad Debt Expense 562 Depreciation Expense Office Equipment 590 Miscellaneous Expense 710 Interest Expense 711 Loss on Redemption of Bonds Journal a Journalize the entry to record the issuance of the installment notes on January 1, 2017 Refer to the Chart of Accounts for exact wording of account titles PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 b Journalize the first annual note payment on January 1, 2018 Refer to the Chart of Accounts for exact wording of account titles PAGE 15 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3

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On the first day of the fiscal year, a company issues $85,000, 6%, five-year installment notes that have annual payments of $20,179. The first note

On the first day of the fiscal year, a company issues $85,000, 6%, five-year installment notes that have annual payments of $20,179. The first note payment consists of $5,100 of interest and $15,079 of principal repayment.

a.	Journalize the entry to record the issuance of the installment notes on January 1, 2017. Refer to the Chart of Accounts for exact wording of account titles.
b.	Journalize the first annual note payment on January 1, 2018. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

General Ledger

	ASSETS
110	Cash
111	Petty Cash
121	Accounts Receivable
122	Allowance for Doubtful Accounts
126	Interest Receivable
127	Notes Receivable
131	Inventory
141	Office Supplies
191	Land
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
221	Salaries Payable
231	Sales Tax Payable
232	Interest Payable
241	Notes Payable
251	Bonds Payable
252	Discount on Bonds Payable
253	Premium on Bonds Payable

	EQUITY
311	Common Stock
312	Paid-In Capital in Excess of Par-Common Stock
315	Treasury Stock
321	Preferred Stock
322	Paid-In Capital in Excess of Par-Preferred Stock
331	Paid-In Capital from Sale of Treasury Stock
340	Retained Earnings
351	Cash Dividends
352	Stock Dividends
390	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
611	Gain on Redemption of Bonds

	EXPENSES
510	Cost of Goods Sold
515	Credit Card Expense
516	Cash Short and Over
522	Office Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Repairs Expense
535	Rent Expense
536	Insurance Expense
537	Office Supplies Expense
541	Bad Debt Expense
562	Depreciation Expense-Office Equipment
590	Miscellaneous Expense
710	Interest Expense
711	Loss on Redemption of Bonds

Journal

a. Journalize the entry to record the issuance of the installment notes on January 1, 2017. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION