On January 1, 2014, Guiado Company issued a $22,000, 4-year, 12%installment note to Best Bank. The note requires annual payments of$7,243, beginning on December 31, 2014.
Journalize the entries to record the following.
2014 Jan. 1 Issued the notes for cash at theirface amount. Dec. 31 Paid the annual payment on thenote, which consisted of interest of $2,640 and principal of$4,603. 2017 Dec. 31 Paid the annual payment on thenote, which consisted of interest of $776 and principal of$6,467.
On January 1, 2014, Guiado Company issued a $22,000, 4-year, 12%installment note to Best Bank. The note requires annual payments of$7,243, beginning on December 31, 2014.
Journalize the entries to record the following.
| 2014 | |
| Jan. 1 | Issued the notes for cash at theirface amount. |
| Dec. 31 | Paid the annual payment on thenote, which consisted of interest of $2,640 and principal of$4,603. |
| 2017 | |
| Dec. 31 | Paid the annual payment on thenote, which consisted of interest of $776 and principal of$6,467. |
Related questions
n January 1 of 20Y2, Hebron Company issued a $19,000, 4-year, 11% installment note to Ventsam Bank. The note requires annual payments of $6,124, beginning on December 31 of 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 $2,090 and principal of $4,034. |
| 20Y5 | |
| Dec. 31 | Paid the annual payment on the note, which included interest of $607. The remainder of the payment reduced the principal balance on the note. |
Issued the note for cash at its face amount.
| Year 1 Jan. 1 | |||
Paid the annual payment on the note, which consisted of interest of $2,090 and principal of $4,034. If an amount box does not require an entry, leave it blank.
| Year 1 Dec. 31 | |||
Paid the annual payment on the note, which included interest of $607. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank.
| Year 4 Dec. 31 | |||
Entries for Installment Note Transactions
On January 1 of 20Y2, Hebron Company issued a $39,000, 4-year, 10% installment note to Ventsam Bank. The note requires annual payments of $12,303, beginning on December 31 of 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 $3,900 and principal of $8,403. |
| 20Y5 | |
| Dec. 31 | Paid the annual payment on the note, which included interest of $1,119. The remainder of the payment reduced the principal balance on the note. |
Issued the note for cash at its face amount.
| Year 1 Jan. 1 | |||
Paid the annual payment on the note, which consisted of interest of $3,900 and principal of $8,403. If an amount box does not require an entry, leave it blank.
| Year 1 Dec. 31 | |||
Paid the annual payment on the note, which included interest of $1,119. The remainder of the payment reduced the principal balance on the note. If an amount box does not require an entry, leave it blank.
| Year 4 Dec. 31 |
