On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank. The note requires annual payments of $22,885, beginning on December 31, 2012. Journalize the entries to record the following: 2012 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. 2015 Dec. 31 Paid the annual payment on the note, including $2,268 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. 20Y2 Jan. 1 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. If an amount box does not require an entry, leave it blank. 20Y2 Dec. 31 Paid the annual payment on the note, including interest of $2,268 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank. 20Y5 Dec. 31 000
On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank. The note requires annual payments of $22,885, beginning on December 31, 2012. Journalize the entries to record the following: 2012 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. 2015 Dec. 31 Paid the annual payment on the note, including $2,268 of interest. The remainder of the payment reduced the principal balance on the note. Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank. 20Y2 Jan. 1 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. If an amount box does not require an entry, leave it blank. 20Y2 Dec. 31 Paid the annual payment on the note, including interest of $2,268 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank. 20Y5 Dec. 31 000
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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Question
![On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank. The note requires annual payments of $22,885, beginning on December 31, 2012.
Journalize the entries to record the following:
20Y2
Jan. 1 Issued the note for cash at its face amount.
Dec. 31 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075.
20Y5
Dec. 31 Paid the annual payment on the note, including $2,268 of interest. The remainder of the payment reduced the principal balance on the note.
Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank.
20Y2 Jan. 1
Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. If an amount box does not require an entry, leave it blank.
20Y2 Dec. 31
88
20Y5 Dec. 31
000 1 000
Paid the annual payment on the note, including interest of $2,268 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank.
000 000
EE](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F26bb3bf6-e58f-4136-ad77-9de1c5193de9%2F934809bb-2a2e-4404-a84c-fa66afb98831%2Fa4hzxi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 20Y2, Hebron Company issued a $71,000, 4-year, 11% installment note to Ventsam Bank. The note requires annual payments of $22,885, beginning on December 31, 2012.
Journalize the entries to record the following:
20Y2
Jan. 1 Issued the note for cash at its face amount.
Dec. 31 Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075.
20Y5
Dec. 31 Paid the annual payment on the note, including $2,268 of interest. The remainder of the payment reduced the principal balance on the note.
Issued the note for cash at its face amount. If an amount box does not require an entry, leave it blank.
20Y2 Jan. 1
Paid the annual payment on the note, which consisted of interest of $7,810 and principal of $15,075. If an amount box does not require an entry, leave it blank.
20Y2 Dec. 31
88
20Y5 Dec. 31
000 1 000
Paid the annual payment on the note, including interest of $2,268 of interest. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank.
000 000
EE
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