A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal payments of $16,000, plus interest on the outstanding balance. The entry to record the first instalment payment will include a
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debit to Notes Payable of $16,000. |
|
credit to Interest Expense of $3,200. |
|
credit to Notes Payable of $12,800. |
|
debit to Cash of $16,000. |
Homework Answers
Answer : A = Debit to Notes payable of $ 16,000.
| Particulars | Debit | Credit |
| Notes Payable | $ 16,000 | |
| Interest Expenses ( $ 80000 * 4 % ) | $ 3,200 | |
| Cash account | $ 19,200 |
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A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
A five-year, 4%, $80,000 note payable is issued on January 1. Terms include fixed annual principal...
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
On August 1, a $48,000, 9%, 3-year installment note payable is issued by a company. The...
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A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
A five-year, 4%, $80,000 note payable is issued on January 1.
Terms include fixed annual principal payments of $16,000, plus
interest on the outstanding balance. The entry to record the first
instalment payment will include a
debit to Notes Payable of $16,000.
credit to Interest Expense of $3,200.
credit to Notes Payable of $12,800.
debit to Cash of $16,000.
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On January 1, Gemstone Company obtained a $165,000, 10-year, 7% ins nt note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $12.942. The journal entry to record the payment of the first annual amount due on the note would include a Oa. credit to interest Payable for $11,550 Ob. debit to Cash for...
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