Question

On January 1, 2019, Eagle Company borrows $35,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $10,333, 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.) View transaction list Eagle borrows $35,000 cash by signing a four-year, 7% installment note. Record the issuance of the note on January 1, 2019. rincipal 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. Credit 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. Note : = journal entry has been entered Record entry Clear entry View general journal

Answer 1

Answer -

Journal of Eagle company

Date	General Journal	Debit ($)	Credit ($)
January 1, 2019	Cash Notes payable [Given in question]	35000 -	- 35000
December 31, 2019	Interest expense [$35000 * 7%] Notes payable [Difference] Cash [Given in question]	2450 7883 -	- - 10333
December 31, 2020	Interest expense [$27117 * 7%] Notes payable [Difference] Cash [Given in question]	1898 8435 -	- - 10333
December 31, 2021	Interest expense [$18682 * 7%] Notes payable [Difference] Cash [Given in question]	1308 9025 -	- - 10333
December 31, 2022	Interest expense [$9657 * 7%] Notes payable [Difference] Cash [Given in question]	676 9657 -	- - 10333