References

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Record the first monthly payment of the $120-$month installment note with $8\%$ interest

Journal entry worksheet

$1$

Record the first monthly payment of the $120-$month installment note with $8\%$ interest.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Credit$],[1,,,]]$

A company has decided to purchase equipment, needing to borrow $$100,000$ from its local bank to make the purchase. The bank gives the company two options: $($a$)60-$month installment note with $4\%$ interest or $($b$)120$ month installment note with $8\%$ interest. Lenders often charge a higher interest rate for longer$-$term loans to compensate for additional risk of lending for a longer time period.

Required:

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Required $5$

Required $6$

Record the first monthly payment of the $120-$month installment note with $8\%$ interest

Journal entry worksheet

$1$

Record the first monthly payment of the $120-$month installment note with $8\%$ interest.

Note: Enter debits before credits.

$\backslash$table$[[$Transaction$,$General Journal,Debit,Gredit$],[1,,,],[,,,]]$