On January 1, 2024, Royal Paradise borrows $42,000 by agreeing to a 5%, four-year note with the bank. Loan payments of $967.23 are due at the end of each month with the first installment due on January 31, 2024. Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 2 Date January 01, 2024 Cash Answer is complete but not entirely correct. General Journal Notes Payable January 31, 2024 Interest Expense Notes Payable Cash Debit 42,000.00 175.00 792.23 Credit 42,000.00 967.23
On January 1, 2024, Royal Paradise borrows $42,000 by agreeing to a 5%, four-year note with the bank. Loan payments of $967.23 are due at the end of each month with the first installment due on January 31, 2024. Required: Record the issuance of the installment note payable and the first two monthly payments. (Do not round intermediate calculations. Round your final answers to 2 decimal places. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 2 Date January 01, 2024 Cash Answer is complete but not entirely correct. General Journal Notes Payable January 31, 2024 Interest Expense Notes Payable Cash Debit 42,000.00 175.00 792.23 Credit 42,000.00 967.23
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.6AP
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