Question

On January 1, 2018, Eagle 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 2018 through 2021. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest dollar amount. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Prepare the journal entries for Eagle to record the loan on January 1, 2018, and the four payments from December 31, 2018, through December 31, 2021. View transaction list Journal entry worksheet < 1 2 3 4 5 Record the payment of the fourth installment payment of interest and principal on December 31, 2021. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2021 Record entry Clear entry View general journal

2- Record the payment of the first installment payment of interest and principal on December 31, 2018.

3- Record the payment of the second installment payment of interest and principal on December 31, 2019.

4- Record the payment of the third installment payment of interest and principal on December 31, 2020.

5- Record the payment of the fourth installment payment of interest and principal on December 31, 2021.

Answer 1

Jan 1,2018	Cash	35000
	Notes Payable		35000
Dec 31,2018	Interest expense	2450		=35000*7%
	Notes Payable	7883
	Cash		10333
Dec 31,2019	Interest expense	1898		=(35000-7883)*7%
	Notes Payable	8435
	Cash		10333
Dec 31,2020	Interest expense	1308		=(35000-7883-8435)*7%
	Notes Payable	9025
	Cash		10333
Dec 31,2021	Interest expense	676		=(35000-7883-8435-9025)*7%
	Notes Payable	9657
	Cash		10333