Below are the details of a loan Levis' obtained from their bank on Novernber 1, 2021. Required: Prepare the following journal entries: a. On November 1, 2021 Levis' borrowed $200,000 from a bank with a five year term at an interest rate of 7% per annum. Date ACCOUNT TITLES Debit Credit 1-Nov b. The first loan payment is due at the end of the month in the amount of $3,800. This payment includes $1,440 of interest. Date ACCOUNT TITLES Debit Credit 30-Nov c. Total loan payments made in 2022 will be $4600. It is determined that $36,000 of this amount will go towards the principal of the loan. Date ACCOUNT TITLES Debit Credit 31-Dec

Below are the details of a loan Levis' obtained from their bank on Novernber 1, 2021. Required: Prepare the following journal entries: a. On November 1, 2021 Levis' borrowed $200,000 from a bank with a five year term at an interest rate of 7% per annum. Date ACCOUNT TITLES Debit Credit 1-Nov b. The first loan payment is due at the end of the month in the amount of $3,800. This payment includes $1,440 of interest. Date ACCOUNT TITLES Debit Credit 30-Nov c. Total loan payments made in 2022 will be $4600. It is determined that $36,000 of this amount will go towards the principal of the loan. Date ACCOUNT TITLES Debit Credit 31-Dec

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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