On January 1, 2024, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 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. Note: 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. View transaction list

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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On January 1, 2024, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the bank. The funds will be used to
purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 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.
Note: 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.
View transaction list
Journal entry worksheet
Record the issuance of a note payable.
Note: Enter debits before credits.
Date
January 01, 2024 Cash
General Journal
Notes Payable
Debit
50,000.00
Credit
50,000.00
Transcribed Image Text:On January 1, 2024, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 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. Note: 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. View transaction list Journal entry worksheet Record the issuance of a note payable. Note: Enter debits before credits. Date January 01, 2024 Cash General Journal Notes Payable Debit 50,000.00 Credit 50,000.00
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