On January 1, 2015, Corvallis Carnivals borrows $11,000 to purchase a delivery t
ID: 2447293 • Letter: O
Question
On January 1, 2015, Corvallis Carnivals borrows $11,000 to purchase a delivery truck by agreeing to a 6%, five-year loan with the bank. Payments of $212.66 are due at the end of each month, with the first installment due on January 31, 2015. Record the issuance of the note payable and the first monthly payment. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round your intermediate calculations. Round your final answers to 2 decimal places.)
Explanation / Answer
Date Title Debit credit jan1 Cash 11000 Note payable 11000 [being amount borrowed and note issued] 31jan2015 Note payable (221.66-55) 157.66 Interest on note payable (11000*.06*1/12] 55 cash 212.66
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