Required information [The following information applies to the questions displayed below.) On January 1, MM Company borrows $320,000 cash from a bank and in return signs an 8% installment note for five annual payments of $80,146 each. epare the journal entry to record issuance of the note. or the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes toward cipal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 or the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes oward principal reduction of the note? terest expense rincipal reduction
Required information [The following information applies to the questions displayed below.) On January 1, MM Company borrows $320,000 cash from a bank and in return signs an 8% installment note for five annual payments of $80,146 each. epare the journal entry to record issuance of the note. or the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes toward cipal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 or the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes oward principal reduction of the note? terest expense rincipal reduction
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
On January 1, MM Company borrows $320,000 cash from a bank and in return signs an 8% installment note for five annual
payments of $80,146 each.
1. Prepare the journal entry to record issuance of the note.
2. For the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes toward
principal reduction of the note?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
For the first $80,146 annual payment at December 31, what amount goes toward interest expense? What amount goes
toward principal reduction of the note?
Interest expense
Principal reduction
< Required 1
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