• Record the issuance of a note payable.
• Record the first monthly payment.
• Record the second monthly payment.

On January 1, 2021, Tropical Paradise borrows $42,000 by agreeing to a 5%, four-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $967.23 are due at the end of each month with the first installment due on January 31, 2021. Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the issuance of a note payable. Note: Enter debits before credits. Date General Journal Debit Credit January 01, 2021