Question

On January 1, 2018, White Corporation signed a $100,000, four-year, 10% note. The loan required White to make payments annually on December 31 of $25,000 principal plus interest. 1. Journalize the issuance of the note on January 1, 2018. 2. Journalize the first payment on December 31, 2018. (Record debits first, then credits. Select explanations on the last line of the journal entry.) Journalize the issuance of the note on January 1, 2018. Date Accounts and Explanation Debit Credit Jan. 1 Journalize the first payment on December 31, 2018. Date Accounts and Explanation Debit Credit Dec. 31

Answer 1

Date		Account titles and explanation		Debit(in $)	Credit(in $)
	Jan-01	Cash		100000
		Notes Payable			100000
	Dec-31	Notes Payable		25000
		Interest expenses		10000
		Cash			35000
		If Western sales purchased an additional 11,000 shares of Treasury Stock then the Shares outstanding shall be
		reduced by 11,000 which is 174,000(185,000-11,000) but the Shares issued shall remain the same at 226,000
		So Option A is the answer