Journalizing installment notesOn the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have annual payments of $9,734. The first note payment consists of$3,600 of interest and $6,134 of principal repayment.a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank.AccountDebitCreditCashNotes PayableFeedback45,000Interest Expense0Check My WorkThe cash payment is the same in each year. The interest and principal repayment, however, change each year. This is because the carrying amount (book value) ofthe note decreases each year as principal is repaid, which decreases the interest.Notes PayableCashb. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank.AccountCreditDebit000XV000X

On the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have annual payments of $9,734. The first note payment consists $3,600 of interest and $6,134 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. Account Debit Credit 0 Cash Notes Payable Feedback ✓ 45,000 Interest Expense Notes Payable Cash 0 ✓ ✓ Check My Work The cash payment is the same in each year. The interest and principal repayment, however, change each year. This is because the carrying amount (book value) o the note decreases each year as principal is repaid, which decreases the interest. b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. Account Credit Debit 0 0 0 ✓ X ✓ 0 0 ✓ 0 X

On the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have annual payments of $9,734. The first note payment consists $3,600 of interest and $6,134 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. Account Debit Credit 0 Cash Notes Payable Feedback ✓ 45,000 Interest Expense Notes Payable Cash 0 ✓ ✓ Check My Work The cash payment is the same in each year. The interest and principal repayment, however, change each year. This is because the carrying amount (book value) o the note decreases each year as principal is repaid, which decreases the interest. b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. Account Credit Debit 0 0 0 ✓ X ✓ 0 0 ✓ 0 X

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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Please only answer the amount fields. Thank you
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