On January 1, 20Y2, Hebron Company issued a $33,000, 4-year, 8% installment note to Ventsam Bank. The note requires annual payments of $9,963, beginning on December 31, 20Y2. Journalize the entries to record the following: 20Y2 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $7,323. 20Y5 Dec. 31 Paid the annual payment on the note, included interest of $738. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. 20Y2 Jan. 1 fill in the blank b2a79dfd4f8ffc5_2 fill in the blank b2a79dfd4f8ffc5_3 fill in the blank b2a79dfd4f8ffc5_5 fill in the blank b2a79dfd4f8ffc5_6 Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $7,323. If an amount box does not require an entry, leave it blank. 20Y2 Dec. 31 fill in the blank fdba50fc0037fa9_2 fill in the blank fdba50fc0037fa9_3 fill in the blank fdba50fc0037fa9_5 fill in the blank fdba50fc0037fa9_6 fill in the blank fdba50fc0037fa9_8 fill in the blank fdba50fc0037fa9_9 Paid the annual payment on the note, included interest of $738. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank. 20Y5 Dec. 31 fill in the blank 37debbfdf01a001_2 fill in the blank 37debbfdf01a001_3 fill in the blank 37debbfdf01a001_5 fill in the blank 37debbfdf01a001_6 fill in the blank 37debbfdf01a001_8 fill in the blank 37debbfdf01a001_9

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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Entries for Installment Note Transactions

On January 1, 20Y2, Hebron Company issued a $33,000, 4-year, 8% installment note to Ventsam Bank. The note requires annual payments of $9,963, beginning on December 31, 20Y2.

Journalize the entries to record the following:

20Y2
Jan. 1	Issued the note for cash at its face amount.
Dec. 31	Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $7,323.
20Y5
Dec. 31	Paid the annual payment on the note, included interest of $738. The remainder of the payment reduced the principal balance on the note.

Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank.

20Y2 Jan. 1		fill in the blank b2a79dfd4f8ffc5_2	fill in the blank b2a79dfd4f8ffc5_3
		fill in the blank b2a79dfd4f8ffc5_5	fill in the blank b2a79dfd4f8ffc5_6

Paid the annual payment on the note, which consisted of interest of $2,640 and principal of $7,323. If an amount box does not require an entry, leave it blank.

20Y2 Dec. 31	fill in the blank fdba50fc0037fa9_2	fill in the blank fdba50fc0037fa9_3
	fill in the blank fdba50fc0037fa9_5	fill in the blank fdba50fc0037fa9_6
	fill in the blank fdba50fc0037fa9_8	fill in the blank fdba50fc0037fa9_9

Paid the annual payment on the note, included interest of $738. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank.

20Y5 Dec. 31	fill in the blank 37debbfdf01a001_2	fill in the blank 37debbfdf01a001_3
	fill in the blank 37debbfdf01a001_5	fill in the blank 37debbfdf01a001_6
	fill in the blank 37debbfdf01a001_8	fill in the blank 37debbfdf01a001_9

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