ASSISTANCE Year 1, Jan. 1Paid the annual payment on the note, which consisted of interest of $1,080 and principal of $2,624. For a compound transaction, if an amount box does not require anentry, leave it blank.Year 1, Dec. 31Paid the annual payment on the note, including $306 of interest. The remainder of the payment reduced the principal balance on the note. For a compound transaction, ifan amount box does not require an entry, leave it blank.Year 4, Dec. 31 Entries for Installment Note TransactionsOn January 1, Year 1, Luzak Company issued a $12,000, 4-year, 9% installment note to McGee Bank. The note requires annual payments of $3,704, beginning onDecember 31, Year 1.Journalize the entries to record the following:Year 1Jan. 1Issued the note for cash at its face amount.Dec. 31 Paid the annual payment on the note, which consisted of interest of $1,080 andprincipal of $2,624.Year 4Dec. 31 Paid the annual payment on the note, including $306 of interest. The remainderof the payment reduced the principal balance on the note.Issued the note for cash at its face amount.Year 1, Jan. 1Paid the annual payment on the note, which consisted of interest of $1,080 and principal of $2,624. For a compound transaction, if an amount box does not require anentry, leave it blank.Year 1, Dec. 31

Journal Entry: It is the first and foremost procedure in an accounting cycle. The transactions are…

January 1, Year 1, Luzak Company issued a $12,000, 4-year, 9% installment note to McGee Bank. The note requires annual paymen ember 31, Year 1. rnalize the entries to record the following: ar 1 . 1 Issued the note for cash at its face amount. c. 31 Paid the annual payment on the note, which consisted of interest of $1,080 and principal of $2,624. ar 4 c. 31 Paid the annual payment on the note, including $306 of interest. The remainder of the payment reduced the principal balance on the note. ued the note for cash at its face amount. ear 1, Jan. 1 d the annual payment on the note, which consisted of interest of $1,080 and principal of $2,624. For a compound transaction, if an ry, leave it blank. par 1 Dec 31

January 1, Year 1, Luzak Company issued a $12,000, 4-year, 9% installment note to McGee Bank. The note requires annual paymen ember 31, Year 1. rnalize the entries to record the following: ar 1 . 1 Issued the note for cash at its face amount. c. 31 Paid the annual payment on the note, which consisted of interest of $1,080 and principal of $2,624. ar 4 c. 31 Paid the annual payment on the note, including $306 of interest. The remainder of the payment reduced the principal balance on the note. ued the note for cash at its face amount. ear 1, Jan. 1 d the annual payment on the note, which consisted of interest of $1,080 and principal of $2,624. For a compound transaction, if an ry, leave it blank. par 1 Dec 31

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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