On the first day of the fiscal year, a company, issues $65,000, 6%, five year installment notes that have annual payments of $15,431.  The first note payment consists of $3,900 of interest and $11,531 of principal repayment.  Journalize the entry to record the issuance of the installment notes.  Journalize the first annual note payment

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 10.6BE: Journalizing installment notes On the first day of the fiscal year, a company issues 45,000, 8%,...
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On the first day of the fiscal year, a company, issues $65,000, 6%, five year installment notes that have annual payments of $15,431.  The first note payment consists of $3,900 of interest and $11,531 of principal repayment. 

Journalize the entry to record the issuance of the installment notes. 

Journalize the first annual note payment 

 

 

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