Killion Company needs to purchase new equipment, but does not have enough cash to purchase it outright. Therefore, on1/1/21, Killion finances the purchase of the equipment by borrowing $29,000 on a 4-year, 5% installment loan. Theloan specifies that Killion needs to make 4 payments of $8,178 once a year for the next four years. Each installmentpayment goes towards both accrued interest and the principal on the loan. Each installment payment is made onDecember 31.repare the journal entries for Killion to record the note's issuance and the first installment payment. (Round your intermediatealculations and final answers to the nearest dollar amount.)View transaction listJournal entry worksheet<12Killion borrows $29,000 cash by signing a four-year, 5% installment note.Record the issuance of the note on January 1, 2021.Note: Enter debits before credits.DateJanuary 01, 2021General JournalDebit< PrevCredit33>of 33 ―Next >

Please find the required Journal Entries in Solution Section Below.

Answered: Killion Company needs to purchase new…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 17P

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