On the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have annual payments of $9,734. The first note payment consists of $3,600 of interest and $6,134 of principal repayment.a. Journalize the entry to record the issuance of the installment notes.b. Journalize the first annual note payment.
On the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have annual payments of $9,734. The first note payment consists of $3,600 of interest and $6,134 of principal repayment.a. Journalize the entry to record the issuance of the installment notes.b. Journalize the first annual note payment.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have annual payments of $9,734. The first note payment consists of $3,600 of interest and $6,134 of principal repayment.
a.
b. Journalize the first annual note payment.
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