On the first day of the fiscal year, a company issues $80,000, 7%, seven-year installment notes that

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On the first day of the fiscal year, a company issues $80,000, 7%, seven-year installment notes that have annual payments of $14,844. The first note payment consists of $5,600 of interest and $9,244 of principal repayment.

a. Journalize the entry to record the issuance of the installment notes.

b. Journalize the first annual note payment.


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Corporate Financial Accounting

ISBN: 978-1133952411

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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