do journal entries please Chart of Accounts Journal Instructions On January 1 of

Question

do journal entries please

Chart of Accounts Journal Instructions On January 1 of 2012. Hebron Company issued a $184,000, five-year, 12% installment note to ventsam Bank. The note requires annual payments of $51,043, beginning on December 31 of 20Y2. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account tities. 20Y2 Jan. Dec. Issued the note for cash at its face amount. Paid the annual payment on the note, which consisted of interest of $22,080 and principal of $28,963. 1 31 20YS Paid the annual payment on the note, which included $10,352 of interest. The remainder of the payment reduced the principal balance on the note. Dec. 31

Explanation / Answer

(a) Year 20Y2 Date Account title Debit Credit Jan.1 Cash 184000 Note payable 184000 Date Account title Debit Credit Dec.31 Interest expense 22080 Note payable 28963 Cash 51043 (b) Year 20Y5 Date Account title Debit Credit Dec.31 Interest expense 10352 Note payable 40691 Cash 51043

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