the same question Brief Exercise 9-1 Record installment notes (LO9-2) being to a

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Brief Exercise 9-1 Record installment notes (LO9-2) being to a 6%, three-year loan with the bank. Payments of $486.75 are due at the end of each month, with the first installment due on January 31, 2018 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 intermediato calculations. Round your final answers to 2 decimal places.) View transaction list Journal entry worksheet Record the issuance of the note payable Note: Enter debits before credits. Date General Journal Debit Credit January 01 2018 Record entry Clear entry View general Journal References eBook & Resources

Explanation / Answer

Journal Entries Date Account Title and explanation Debit Credit January 01, 2018 Truck $                  16,000       To 6% Loan Account $                     16,000 (6% loan taken for the purhcae of truck) January 31, 2018 Interest Expenses $                           80 6% Loan Account $                        407          To Cash $                     486.75 (To Record the first installement paid for loan taken) Note: Loan Amount = $                  16,000 Interest @ 6% for 1 month = $ 16,000 X 6% /12 = $                           80

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