On January 1, 2014, Guiado Company issued a $39,000, 4-year, 10% installment not
ID: 2477408 • Letter: O
Question
On January 1, 2014, Guiado Company issued a $39,000, 4-year, 10% installment note to Best Bank. The note requires annual payments of $12,303, beginning on December 31, 2014.
Journalize the entries to record the following.
Entries for Issuing Installment Note Transactions
On January 1, 2014, Guiado Company issued a $39,000, 4-year, 10% installment note to Best Bank. The note requires annual payments of $12,303, beginning on December 31, 2014.
Journalize the entries to record the following.
Issued the notes for cash at their face amount.
2014 Jan. 1
Paid the annual payment on the note, which consisted of interest of $3,900 and principal of $8,403. For a compound transaction, if an amount box does not require an entry, leave it blank.
2014 Dec. 31
Paid the annual payment on the note, which consisted of interest of $1,119 and principal of $11,184. For a compound transaction, if an amount box does not require an entry, leave it blank.
2017 Dec. 31
2014 Jan. 1 Issued the notes for cash at their face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $3,900 and principal of $8,403. 2017 Dec. 31 Paid the annual payment on the note, which consisted of interest of $1,119 and principal of $11,184.
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Entries for Issuing Installment Note Transactions
On January 1, 2014, Guiado Company issued a $39,000, 4-year, 10% installment note to Best Bank. The note requires annual payments of $12,303, beginning on December 31, 2014.
Journalize the entries to record the following.
2014 Jan. 1 Issued the notes for cash at their face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $3,900 and principal of $8,403. 2017 Dec. 31 Paid the annual payment on the note, which consisted of interest of $1,119 and principal of $11,184. HideIssued the notes for cash at their face amount.
2014 Jan. 1
Hide
Paid the annual payment on the note, which consisted of interest of $3,900 and principal of $8,403. For a compound transaction, if an amount box does not require an entry, leave it blank.
2014 Dec. 31
Hide
Paid the annual payment on the note, which consisted of interest of $1,119 and principal of $11,184. For a compound transaction, if an amount box does not require an entry, leave it blank.
2017 Dec. 31
Explanation / Answer
Journal entries
Jan 1 , 2014
Cash dr 39,000
10% Note payable Cr 39,000
31 dec 2014
10% note payable Dr 8,403
Interest expense Dr 3,900
Cash Cr 12,303
31 dec 2017
10% note payable Dr 11,184
Interest expense Dr 1,119
Cash Cr 12,303
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