On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that have annual payments of $13,710. The first note payment consists of $6,210 of interest and $7,500 of principal repayment.

Question Content Area

a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableBonds PayableCashInterest ExpenseInterest PayableNotes Payable	- Select -	- Select -
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayableNotes Payable	- Select -	- Select -

Question Content Area

b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableBonds PayableCashInterest ExpenseInterest PayableInterest Receivable	- Select -	- Select -
	Accounts PayableAccounts ReceivableBonds PayableCashInterest PayableNotes Payable	- Select -	- Select -
	Accounts PayableBonds PayableCashInterest ExpenseInterest PayableNotes Payable	- Select -	- Select -