On January 1, 2024, Royal Paradise borrows $42,000 by agreeing to a 5%, four-year note with the bank. Loan payments of $967.23 are due at the end of each month with the first installment due on January 31, 2024. Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 2 Date January 01, 2024 Cash Answer is complete but not entirely correct. General Journal Notes Payable January 31, 2024 Interest Expense Notes Payable Cash Debit 42,000.00 175.00 792.23 Credit 42,000.00 967.23

FINANCIAL ACCOUNTING
10th Edition
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Exercise 9-2 (Algo) Record installment notes (LO9-2)
On January 1, 2024, Royal Paradise borrows $42,000 by agreeing to a 5%, four-year note with the bank. Loan payments of $967.23
are due at the end of each month with the first installment due on January 31, 2024.
Required:
Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations.
Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry
Required" in the first account field.)
No
1
2
3
Date
January 01, 2024 Cash
Answer is complete but not entirely correct.
General Journal
Notes Payable
January 31, 2024 Interest Expense
Notes Payable
Cash
February 29, 2024 Interest Expense
Notes Payable
Cash
✓
✓
✓
✓
✓
***
Debit
42,000.00
175.00✔
792.23✔
170.97 X
796.26 X
Credit
42,000.00✔
967.23✔
967.23✔
Transcribed Image Text:Exercise 9-2 (Algo) Record installment notes (LO9-2) On January 1, 2024, Royal Paradise borrows $42,000 by agreeing to a 5%, four-year note with the bank. Loan payments of $967.23 are due at the end of each month with the first installment due on January 31, 2024. Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 2 3 Date January 01, 2024 Cash Answer is complete but not entirely correct. General Journal Notes Payable January 31, 2024 Interest Expense Notes Payable Cash February 29, 2024 Interest Expense Notes Payable Cash ✓ ✓ ✓ ✓ ✓ *** Debit 42,000.00 175.00✔ 792.23✔ 170.97 X 796.26 X Credit 42,000.00✔ 967.23✔ 967.23✔
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