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Record (1) the receipt of the $21,500 cash and the issue of the note on July 1, 2020; (2) the accrual of interest on December 31, 2020; (3) the first payment on June 30, 2021; and (4) the accrual of interest on December 31, 2021

Record (1) the receipt of the $21,500 cash and the issue of the note on July 1, 2020; (2) the accrual of interest on December 31, 2020; (3) the first payment on June 30, 2021; and (4) the accrual of interest on December 31, 2021. (Round answers to the nearest whole dollar, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit 2020 July 1 Cash 21500 Notes Payable 21500 Dec. 31 Interest Expense 430 Interest Payable 430 2021 une 30 Interest Payable 430 Interest Expense 430 Notes Payable 10539 Cash 11399 Dec. 31 Interest Expense 275 Interest Payable 275 e Textbook and Media List of Accounts Save for Later Attempts: 13 of 15 used Submit Answer On July 1, 2020, Bonita Ltd. borrowed $21,500 by signing a two-year, 4% note payable. The note is payable in two annual instalments of $11.399 on June 30. The company records adjusting journal entries annually at year end on December 31. (a) Your answer is correct. Prepare an instalment payment schedule for the term of the note. (Round answers to the nearest whole dollar, e.g. 5,255.) Cash Payment Interest Expense Reduction of Principal Principal Balance $ 21500 11399 $ 860 $ 10539 10961 11399 437 10962 i e Textbook and Media List of Accounts Attempts: 12 of 15 used Question Part Score 0.75/0.75

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