Answered: On January 1, 2019, Brooks, Inc.…

On January 1, 2019, Brooks, Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381. Complete the necessary journal entry on 12/31.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Question

On January 1, 2019, Brooks, Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381.

Complete the necessary journal entry on 12/31.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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