Question

Exercise 10-13 Installment note entries LO C1 

On January 1, 2019, Eagle Company borrows $24,000 cash by signing a four-year, 8% installment note. The note requires four equal payments of $7,246, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022. 

Prepare the journal entries for Eagle to record the note's issuance and the four payments. (Round your intermediate calculations and final answers to the nearest dollar amount.) 

 1 Eagle borrows $24,000 cash by signing a four-year, 8% installment note. Record the issuance of the note on January 1, 2019. 

 2 Record the payment of the first installment payment of interest and principal on December 31, 2019.

 3 Record the payment of the second installment payment of interest and principal on December 31, 2020.

 4 Record the payment of the third installment payment of interest and principal on December 31, 2021 

 5 Record the payment of the fourth installment payment of interest and principal on December 31, 2022.

Answer 1

	A	B	C	D	E.
Period
Ending	Beginning	Debit	Debit	Credit	Ending
Date	Balance	intt expense	notes paybale	cash	Balance
2019	24,000	1920	5,326	7,246	18,674
2020	18,674	1494	5,752	7,246	12,922
2021	12,922	1034	6,212	7,246	6,710
2022	6,710	537	6,709	7,246	0
Total		4984	24,000	28,984
Date	General Journal				debit	Credit
1/1/2019	Cash				24,000
	Notes payable					24,000
12/31/2019	Interest expense				1920
	notes payable				5,326
	cash					7,246
12/31/2020	Interest expense				1494
	notes payable				5,752
	cash					7,246
12/31/2021	Interest expense				1034
	notes payable				6,212
	cash					7,246
12/31/2022	Interest expense				537
	notes payable				6,709
	cash					7,246