Question

by signing a 1 installmente allment note that is the SUES e on December 31, 2016 Shea Ltd pur $100,000. 5-ye December 31, 20 Prepare an am asing of the money ud interest plus equal al entries to record the first and ACCINS QUESTION Over venom od 550.000 h de San t of which is on Decem (a) Pra w al w or the one theme that he wa s of accede A wal Peralmal entries www. 1) Cars the m a n asmens stalne reward the first and w e nt payments (Rou w that the note requires sal journal entries to Round all amounts to the Prore general si

Answer 1

(a)
	Trans	General Journal	Debit	Credit
	31 Dec,2015	Cash	$ 50,000.00
		14% Installment Note		$ 50,000.00
(b)	31 Dec,2016	Interest Expenses	$    7,000.00
		Accrued Interest		$    7,000.00
	31 Dec,2016	14% Installment Note	$ 10,000.00
		Accrued Interest	$    7,000.00
		Cash		$ 17,000.00
	31 Dec,2017	Interest Expenses	$    5,600.00
		Accrued Interest		$    5,600.00
	31 Dec,2017	14% Installment Note	$ 10,000.00
		Accrued Interest	$    5,600.00
		Cash		$ 15,600.00
(c)	31 Dec,2016	Interest Expenses	$    7,000.00
		Accrued Interest		$    7,000.00
	31 Dec,2016	14% Installment Note	$    7,564.00
		Accrued Interest	$    7,000.00
		Cash		$ 14,564.00
	31 Dec,2017	Interest Expenses	$    5,941.04
		Accrued Interest		$    5,941.04
	31 Dec,2017	14% Installment Note	$    8,622.96
		Accrued Interest	$    5,941.04
		Cash		$ 14,564.00