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  3. journalizing installment notes on the first day of

Journalizing Installment Notes On the first day of the fiscal year, a company issues $58,000,10%,...

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Accounting

image Journalizing Installment Notes On the first day of the fiscal year, a company issues $58,000,10%, six-year installment notes that have annual payments of $13,317. The first note payment consists of $5,800 of interest and $7,517 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. Notes Payable Feedback Check My Work The cash payment is the same in each year. The interest and principal repayment, however, change each year. This is because the carrying amount (book value) of the note decreases each year as principal is repaid, which decreases the interest. b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. Interest Expense Notes Payable

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