[The following information applies to the questions displayed below.] On January 1, 2021, Eagle Company borrows $22,000 cash by signing a four-year, 6% installment note. The note requires four equal payments of $6,349, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare the journal entries for Eagle to record the note's issuance and each of the four payments. Note: Round your intermediate calculations and final answers to the nearest dollar amount. View transaction list 1 Eagle borrows $22,000 cash by signing a four-year, 6% installment note. Record the issuance of the note on January 1, 2021. 2 Record the payment of the first installment payment of interest and principal on December 31, 2021. 3 Record the payment of the second installment payment of interest and principal on December 31, 2022. 4 Record the payment of the third installment payment of interest and principal on December 31, 2023. 5 Record the payment of the fourth installment payment of interest and principal on December 31, 2024. (Hint: Make sure that the balance in Notes payable is $0 after this = journal entry has been entered Note : X ote. Credit

[The following information applies to the questions displayed below.] On January 1, 2021, Eagle Company borrows $22,000 cash by signing a four-year, 6% installment note. The note requires four equal payments of $6,349, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024. Prepare the journal entries for Eagle to record the note's issuance and each of the four payments. Note: Round your intermediate calculations and final answers to the nearest dollar amount. View transaction list 1 Eagle borrows $22,000 cash by signing a four-year, 6% installment note. Record the issuance of the note on January 1, 2021. 2 Record the payment of the first installment payment of interest and principal on December 31, 2021. 3 Record the payment of the second installment payment of interest and principal on December 31, 2022. 4 Record the payment of the third installment payment of interest and principal on December 31, 2023. 5 Record the payment of the fourth installment payment of interest and principal on December 31, 2024. (Hint: Make sure that the balance in Notes payable is $0 after this = journal entry has been entered Note : X ote. Credit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Jane's Don't Company borrowed $201,000 on January 1, 2024, and signed a two-year note bearing interest at 13%. Interest is payable in full at maturity on January 1, 2026. In connection with this note, Jane's should report interest expense at December 31, 2024, in the amount of: Multiple Choice $55,396. $26,130. $52,260. $0.
How to journalize the issuance of the note on january 1 2024
Da
Barton Chocolates used a promissory note to borrow $1,350,000 on July 1, 2018, at an annual interest rate of 6 percent. The note is to be repaid in yearly installments of $270,000, plus accrued interest, on June 30 of every year until the note is paid in full (on June 30, 2023). Show how the results of this transaction would be reported in a classified balance sheet prepared as of December 31, 2018. (Do not round intermediate calculations.)
I need help with this
At December 31, 2021, Sheridan Company had a five-month, 5%, $79,200 note receivable that was issued on October 1, 2021. Interest and principal are payable at maturity on March 1, 2022. Prepare the March 1, 2022, entry to record the receipt of cash at maturity for the note
On September 1, 2024, Daylight Donuts signed a $150,000, 8%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2025. Daylight Donuts accrued interest for the note on December 31, 2024. Which of the following would be recorded on the payment of the note plus accrued interest at maturity on March 1, 2025? (Do not round your intermediate calculations.) Multiple Choice Interest Payable of $2,000 Interest Expense of $6,000 Interest Expense of $2,000 Interest Expense of $4,000
Alpesh
On January 1, 2021, Eagle Company borrows $29,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $8,178, consisting of accrued interest and principal on December 31 of each year from 2021 through 2024.
The financial statements of Bavarian Sausage Works (BSW) dated December 31, 2020, show $50,000 for "Note receivable." You learn that the company provided $50,000 cash to a customer (a new chain of hot dog stands) in exchange for a promissory note. The note was issued on January 1, 2019, bearing interest at 12% per year (which approximates the market interest rate), with principal and interest of $56,000 due on January 1, 2020. The hot dog chain has had numerous delays obtaining the required licences to operate on street corners. Consequently, on January 1, 2020, the chain and BSW renegotiated the promissory note so that the $56,000 in principal and interest would come due on January 1, 2022. Aside from the initial recording of the note receivable on January 1, 2019, BSW has not recorded any other journal entries relating to this note. Required Provide the necessary journal entries to correct BSW's accounts in 2019 and 2020.
Sweet, Inc. issued a $120,000, 4-year, 8% note at face value to Flint Hills Bank on January 1, 2025, and received $120,000 cash. The note requires annual interest payments each December 31. Prepare Sweet's journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. Date (a) (b) Account Titles and Explanation Debit Credit
please answer correct