Reference no: EM132742643
Problem - Entries for Installment Note Transactions
On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of $43,830, beginning on December 31, 20Y2. 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 $14,000 and principal of $29,830.
20Y5
Dec. 31. Paid the annual payment on the note, included $6,253 of interest. The remainder of the payment reduced the principal balance on the note.
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Problem - Entries for Installment Note Transactions
: Problem - Entries for Installment Note Transactions - On January 1, 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank
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