Chpt 10 On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of$85,155 each.1. Prepare the journal entry to record issuance of the note.2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes towardprincipal reduction of the note?Complete this question by entering your answers in the tabs below.Required 1Required 2For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goestoward principal reduction of the note?Interest expensePrincipal reduction< Required 1Required 2 >Assessment Toc< Prev10 of 18Next > On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of$85,155 each.1. Prepare the journal entry to record issuance of the note.2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes towardprincipal reduction of the note?Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare the journal entry to record issuance of the note.View transaction listJournal entry worksheet1< Prev10 of 18Next >

Interest expense for first installment = Notes payable x rate of interest x no. of months in…

On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record issuance of the note. View transaction list Journal entry worksheet 1

On January 1, MM Co. borrows $340,000 cash from a bank and in return signs an 8% installment note for five annual payments of $85,155 each. 1. Prepare the journal entry to record issuance of the note. 2. For the first $85,155 annual payment at December 31, what amount goes toward interest expense? What amount goes toward principal reduction of the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record issuance of the note. View transaction list Journal entry worksheet 1

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 61P

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