Asked by Llaneth Valenzuela on Jun 10, 2024
Verified
On January 1, Year 1 a company borrowed $70,000 cash by signing a 9% installment note that is to be repaid with 4 annual year-end payments of $21,607, the first of which is due on December 31, Year 1.
(a) Prepare the company's journal entry to record the note's issuance.
(b) Prepare the journal entries to record the first and second installment payments.
Year-End Payments
Financial obligations that are due or paid at the end of the fiscal year, such as bonuses or tax liabilities.
- Comprehend the procedures for recording bond issuance, installment payments, and amortization entries in journal entries.
Verified Answer
CM
Learning Objectives
- Comprehend the procedures for recording bond issuance, installment payments, and amortization entries in journal entries.
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