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Question: Journalizing Installment Notes
On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that have annual payments of $13,710. The first note payment consists of $6,210 of interest and $7,500 of principal repayment.
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a. Journalize the entry to record the issuance of the installment notes.
b. Journalize the first annual note payment. For a compound transaction, if an amount box does not require an entry, leave it blank.
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