6% Green Valley Municipality borrowed $120,000 on a 10-year, installment note payable on January 1, Year 1. The terms of the note require Green Valley to pay 10 equal payments of $16,500 each December 31 for 10 years. Prepare the required general journal entry to record the first payment on the note on December 31, Year 1.

6% Green Valley Municipality borrowed $120,000 on a 10-year, installment note payable on January 1, Year 1. The terms of the note require Green Valley to pay 10 equal payments of $16,500 each December 31 for 10 years. Prepare the required general journal entry to record the first payment on the note on December 31, Year 1.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 20E: Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000,...

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