Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Annual Period Interest Expense Annual Payment Principal Payment Ending Balance 1 $1,200.00 $8,264.70 $7,064.70 $22,935.30 2 $917.41 $8,264.70 $7,347.29 $15,588.01 3 $623.52 $8,264.70 $7,641.18 $7,946.83 4 $317.87 $8,264.70 $7,946.83 $0 Principal Payment Cash Interest Income LT Notes Payable Annual Payment Interest Expense provide the journal entry for the first year payment: DR DR/CR? CR
Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year. Annual Period Interest Expense Annual Payment Principal Payment Ending Balance 1 $1,200.00 $8,264.70 $7,064.70 $22,935.30 2 $917.41 $8,264.70 $7,347.29 $15,588.01 3 $623.52 $8,264.70 $7,641.18 $7,946.83 4 $317.87 $8,264.70 $7,946.83 $0 Principal Payment Cash Interest Income LT Notes Payable Annual Payment Interest Expense provide the journal entry for the first year payment: DR DR/CR? CR
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest rate was 4% compounded annually. Halep Inc. will make payments of $8,264.70 at the end of each year.
| Annual Period | Interest Expense | Annual Payment |
Principal Payment |
Ending Balance |
| 1 | $1,200.00 | $8,264.70 | $7,064.70 | $22,935.30 |
| 2 | $917.41 | $8,264.70 | $7,347.29 | $15,588.01 |
| 3 | $623.52 | $8,264.70 | $7,641.18 | $7,946.83 |
| 4 | $317.87 | $8,264.70 | $7,946.83 | $0 |
| Principal Payment | Cash | Interest Income |
| LT Notes Payable | Annual Payment | Interest Expense |
provide the
| DR | ||
| DR/CR? | ||
| CR |
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