Concord, Inc. issued a $150,000, 4-year, 9% note at face value to Flint Hills Ba

ID: 2596339 • Letter: C

Question

Concord, Inc. issued a $150,000, 4-year, 9% note at face value to Flint Hills Bank on January 1, 2017, and received $150,000 cash. The note requires annual interest payments each December 31.

Prepare Concord’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

2017

Details

Amount

Debit A/c

Credit A/c

Jan 1

Issue of 4% Note Payable to Flint Hills Bank for 4 years commencing 1 Jan 2017, for $150,000

150,000

Cash

Note Payable – Flint Hills Bank

Dec 31

Accrued Interest on Note Payable for Flint Hills Bank for y.e.31 Dec 2017

13,500

Interest Expense

Interest Payable