Journalizing Installment Notes On the first day of the fiscal year, a company issues $39,000, 10%, four-year installment notes that have annual payments of $12,303. The first note payment consists of $3,900 of interest and $8,403 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. Cash Notes Payable Feedback b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. Interest Expense Notes Payable Cash
Journalizing Installment Notes On the first day of the fiscal year, a company issues $39,000, 10%, four-year installment notes that have annual payments of $12,303. The first note payment consists of $3,900 of interest and $8,403 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. Cash Notes Payable Feedback b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. Interest Expense Notes Payable Cash
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Journalizing Installment Notes
On the first day of the fiscal year, a company issues $39,000, 10%, four-year installment notes that have annual payments of $12,303. The first note
payment consists of $3,900 of interest and $8,403 of principal repayment.
a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank.
Cash
Notes Payable
Feedback
b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank.
Interest Expense
Notes Payable
Cash
Feedback
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