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On January 1, 20Y2, Hebron Company issued a $251.000. five-year. 5% installment note to Ventsam Bank. The note requires annual payments of $57.975, beginning on December 20Y2. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Jan. 1 Issued the note for cash at its face amount. Dec. 31 Paid the annual payment on the note, which consisted of interest of $12,550 and principal of $45,425. 2045 Dec. 31 Paid the annual payment on the note, included $5,390 of interest. The remainder of the payment reduced the principal balance on the note. CHART OF ACCOUNTSHebron Company General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Inventory 141 Office Supplies 142 Store Supplies 151 Prepaid Insurance 191 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable

Answer 1

JOURNAL ENTRY FOR THE YEAR 20Y2
Journal Entries
Sr. No.	Date	Account Title and explanation	Debit	Credit
1	Jan 01, 20Y2	Cash	$2,51,000
		Note Payable		$2,51,000
2	Dec 31, 20Y2	Note Payable	$45,425
		Interest Expenses	$12,550
		Cash		$57,975
JOURNAL ENTRY FOR THE YEAR 20Y5
Journal Entries
Sr. No.	Date	Account Title and explanation	Debit	Credit
2	Dec 31, 20Y2	Note Payable	$52,585
		Interest Expenses	$5,390
		Cash		$57,975