On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon Bank. The note requires annual payments of $47,846, beginning on December 31, Year 1. Required: Journalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Year 1 Jan Dec Year 4 Dec 1 31 31 Issued the note for cash at its face amount. Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326. Paid the annual payment on the note, including $3,610 of interest. The remainder of the payment reduced the principal balance on the note.

On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon Bank. The note requires annual payments of $47,846, beginning on December 31, Year 1. Required: Journalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Year 1 Jan Dec Year 4 Dec 1 31 31 Issued the note for cash at its face amount. Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326. Paid the annual payment on the note, including $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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