Tamarisk, Inc. issued a $190,000, 4-year, 12% note at face value to Flint Hills
ID: 2408177 • Letter: T
Question
Tamarisk, Inc. issued a $190,000, 4-year, 12% note at face value to Flint Hills Bank on January 1, 2017, and received $190,000 cash. The note requires annual interest payments each December 31.
Prepare Tamarisk’s journal entries to record (a) the issuance of the note and (b) the December 31 interest payment. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No.
Date
Account Titles and Explanation
Debit
Credit
No.
Date
Account Titles and Explanation
Debit
Credit
(a)Jan. 1, 2017Dec. 31, 2017
(b)Jan. 1, 2017Dec. 31, 2017
Explanation / Answer
Date Titles Debit Credit Jan 1, 2017 Cash $ 190,000 Note payable $ 190,000 Dec 31, 2017 Interest expenses ($190,000*12%) $ 22,800 Cash $ 22,800
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