Question

On January 1, 2014, O'Brien Company issued a $210,000, six-year, 9% installment note to Bulldog Bank. The note requires annual payments of $46,813, beginning on December 31, 2014. Journalize the entries to record the following:
2014
Jan. 1. Issued the notes for cash at their face amount.
Dec. 31. Paid the annual payment on the note, which consisted of interest of $18,900 and principal of $27,913.
2017
Dec. 31. Paid the annual payment on the note, included $10,665 of interest. The remainder of the payment reduced the principal balance on the note.



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  • CreatedFebruary 28, 2014
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