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Entries for Installment Note Transactions On January 1, Year 1, Wedekind Company issued a $22,000, 4-year, 12% installment note to Shannon Bank. The note requires annual payments of $7,243, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $4,603. Year 4 Dec. 31 Paid the annual payment on the note, including $776 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. Year 1, Jan. 1 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $4,603. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 Paid the annual payment on the note, including $776 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank. Year 4, Dec. 31 00 00

Entries for Installment Note Transactions On January 1, Year 1, Wedekind Company issued a $22,000, 4-year, 12% installment note to Shannon Bank. The note requires annual payments of $7,243, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $4,603. Year 4 Dec. 31 Paid the annual payment on the note, including $776 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. Year 1, Jan. 1 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $4,603. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 Paid the annual payment on the note, including $776 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank. Year 4, Dec. 31 00 00

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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Entries for Installment Note Transactions On January 1, Year 1, Wedekind Company issued a $22,000, 4-year, 12% installment note to Shannon Bank. The note requires annual payments of $7,243, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $4,603. Year 4 Dec. 31 Paid the annual payment on the note, including $776 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. 88 Year 1, Jan. 1 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $4,603. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 Paid the annual payment on the note, including $776 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not reguire an entry, leave it blank. Year 4, Dec. 31 00
Transcribed Image Text:Entries for Installment Note Transactions On January 1, Year 1, Wedekind Company issued a $22,000, 4-year, 12% installment note to Shannon Bank. The note requires annual payments of $7,243, beginning on December 31, Year 1. Journalize the entries to record the following: Year 1 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $4,603. Year 4 Dec. 31 Paid the annual payment on the note, including $776 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. 88 Year 1, Jan. 1 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $4,603. If an amount box does not require an entry, leave it blank. Year 1, Dec. 31 Paid the annual payment on the note, including $776 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not reguire an entry, leave it blank. Year 4, Dec. 31 00
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