art of Accounts Journal Instructions On January 1, 2016, Hebron Company issued a
ID: 2485360 • Letter: A
Question
art of Accounts Journal Instructions On January 1, 2016, Hebron Company issued a $231,000, five- year, 9% installment note to Ventsam Bank. The note requires annual payments of $59,388, beginning on December 31, 2016. Journalize the entries to record the following transactions. Be I sure to include the year in the date for the entries. Refe to the Chart of Accounts for exact wording of account titles. 2016 Jan. 1 Issued the note for cash at its face amount. 21 Daid th thn.ann.nl..n.nmont nn.th a.n nidExplanation / Answer
January 1 2016
Cash account debit 231,000
To Notes payble 231,000
( for $231,000 notes issued for cash to Ventsam Bank)
December 31
Interest expense account debit 20,790
Notes payable account debit 38,598
To Cash 59,388
( for interest and principal paid back on 31 December)
December 31 2019
Interest account debit 9,402
Notes payable account debit 49,986
To cash 59,388
( for interest and principal paid back on 31 Dec 2019)
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