On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the bank. The note's proceeds will eventually be used to purchase a building. The journal entry to record the note is already shown in the journal below. The note will be paid back in nine equal annual installment payments of $ 75,059 on December 31 of each year beginning December 31, 20X1. Required: Using the above information, prepare the journal entries to record the first and second installment payments due on 12/31/X1 and 12/3 X2, respectively. Note: Round all calculations to the nearest whole dollar. Do not use currency symbols, commas or decimal points in your responses. Date Account Name Debit Credit 1/1/X1 |Cash 450,000 Note Payable 450,000| 12/31/X1 12/31/X2
On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year installment note with the bank. The note's proceeds will eventually be used to purchase a building. The journal entry to record the note is already shown in the journal below. The note will be paid back in nine equal annual installment payments of $ 75,059 on December 31 of each year beginning December 31, 20X1. Required: Using the above information, prepare the journal entries to record the first and second installment payments due on 12/31/X1 and 12/3 X2, respectively. Note: Round all calculations to the nearest whole dollar. Do not use currency symbols, commas or decimal points in your responses. Date Account Name Debit Credit 1/1/X1 |Cash 450,000 Note Payable 450,000| 12/31/X1 12/31/X2
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
Related questions
Question
![On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year
installment note with the bank. The note's proceeds will eventually be used to
purchase a building.
The journal entry to record the note is already shown in the journal below.
The note will be paid back in nine equal annual installment payments of $
75,059 on December 31 of each year beginning December 31, 20X1.
Required: Using the above information, prepare the journal entries to record the
first and second installment payments due on 12/31/X1 and 12/31/X2,
respectively.
Note: Round all calculations to the nearest whole dollar. Do not use currency
symbols, commas or decimal points in your responses.
Date
Account Name
Debit
Credit
1/1/X1
Cash
450,000
Note Payable
450,000
12/31/X1
12/31/X2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5b56ad38-76cf-4aae-8d0b-1f50d2b55973%2F15a5e864-9451-4e2a-9dbc-6cb57aaad243%2Fmr7pgyb_processed.png&w=3840&q=75)
Transcribed Image Text:On 1/1/X1, Caldwell Corp. borrowed $450,000 by agreeing to a 9%, 9-year
installment note with the bank. The note's proceeds will eventually be used to
purchase a building.
The journal entry to record the note is already shown in the journal below.
The note will be paid back in nine equal annual installment payments of $
75,059 on December 31 of each year beginning December 31, 20X1.
Required: Using the above information, prepare the journal entries to record the
first and second installment payments due on 12/31/X1 and 12/31/X2,
respectively.
Note: Round all calculations to the nearest whole dollar. Do not use currency
symbols, commas or decimal points in your responses.
Date
Account Name
Debit
Credit
1/1/X1
Cash
450,000
Note Payable
450,000
12/31/X1
12/31/X2
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