FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Chpt 10
On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of
$85,155 each.
1. Prepare the journal entry to record issuance of the note.
2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward
principal reduction of the note?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes
toward principal reduction of the note?
Interest expense
Principal reduction
< Required 1
Required 2 >
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Transcribed Image Text:On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Interest expense Principal reduction < Required 1 Required 2 > Assessment Toc < Prev 10 of 18 Next >
On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of
$85,155 each.
1. Prepare the journal entry to record issuance of the note.
2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward
principal reduction of the note?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the journal entry to record issuance of the note.
View transaction list
Journal entry worksheet
1
< Prev
10 of 18
Next >
expand button
Transcribed Image Text:On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record issuance of the note. View transaction list Journal entry worksheet 1 < Prev 10 of 18 Next >
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