On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a sevenyear, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822.

Journalize the entries to record the following:

a1. Issued the installment note for cash on the first day of the fiscal year.

a2. Paid the first annual payment on the note. For a compound transaction, if an amount box does not require an entry, leave it blank.

10.2

Entries for installment Note Transactions On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7% installment note to Soros Bank. The note requires annuel payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822. Journalize the entries to record the following: al. Issued the installment nate for cash on the first day of the fiscal year. a2. Paid the first annual payment on the note. For a compound transaction, if an amount box does not require en entry, leave it blenik Feedback PCheck My Whik b. How would the notes payable be reported on the balance sheet at the end of the fiscal year? The portion of the note payable that is due within one year is reported as a current liability. The remaining portion of the note payable that is not due within one year is reported as a long-term liability feedback - Check My Warik Feedback v Chuck My Watik Partial, eoreet