Question

Exercise 10-13 Installment note entries LO C1 On January 1, 2019, Eagle Company borrows $16,000 cash by signing a four-year, 5% installment note. The note requires four equal payments of $4,512, 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 Journal entry worksheet 1 2 3 4 5 > Eagle borrows $16,000 cash by signing a four-year, 5% installment note. Record the issuance of the note on January 1, 2019. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2019 Record entry Clear entry View general Journal

Answer 1

Answer
Journal entries
Date	Particulars	Debit ($)	Credit ($)
Jan 01, 2019	Cash	$     16,000
	Note payable		$     16,000
Dec 31, 2019	Interest expenses	$          800		16000*5%
	Note payable	$       3,712		4512-800
	Cash		$       4,512
	( to record 1st installment )
Dec 31, 2020	Interest expenses	$          614		12288*5%
	Note payable	$       3,898		4512-614
	Cash		$       4,512
	( to record 2nd installment )
Dec 31, 2021	Interest expense	$          420		8390*5%
	Note payable	$       4,092		4512-420
	Cash		$       4,512
	( to record 3rd installment )
Dec 31, 2022	Interest expense	$          214		4298*5%
	Note payable	$       4,298		4512-214
	Cash		$       4,512
	( to record 4th installment )