Question

Entries for installment Note Transactions On the first day of the fiscal year, Shiller Company borrowed $47,000 by giving a four year, 9% installment note to Soros Bank. The note requires annual payments of $14,629, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of 54,230 and principal repayment of $10,399. Journalize the entries to record the following: al. Issued the installment note for cash on the first day of the fiscal year Accounts Payable Accounts Payable 2. Paid the best annualm ent on the note. If an amount box does not require an entry leave it blank A s Payable Accounts Payable Accounts Payable b. How would the tes payable beported on the barve sheet at the end of

Answer 1

Debit Credit Account title and explanation Cash Note payable 47,000 47,000 Debit Credit a2 Account title and explanation Interest expense Note payable Cash 4,230 10,399 14,629 b Note payable be reported as LONG TERM LIABILTY Section of the balance sheet Please comment if you have any doubt Please give thumps up if you are satisfied with the answer