On January 1, 20Y2, Hebron Company issued a $213,000, five-year, 4% installment note to Ventsam Bank. The note requires annual payments of $47,846, beginning on December 31, 20Y2. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Jan. Dec. 20Y5 Dec. 1 Issued the note for cash at its face amount. 31 Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326. 31 Paid the annual payment on the note, included $3,610 of interest. The remainder of the payment reduced the principal balance on the note.

On January 1, 20Y2, Hebron Company issued a $213,000, five-year, 4% installment note to Ventsam Bank. The note requires annual payments of $47,846, beginning on December 31, 20Y2. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Jan. Dec. 20Y5 Dec. 1 Issued the note for cash at its face amount. 31 Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326. 31 Paid the annual payment on the note, included $3,610 of interest. The remainder of the payment reduced the principal balance on the note.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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