On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon...

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On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon Bank. The note requires annual payments of $47,846, beginning on December 31, Year 1. Required: Joumalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Year 1 Jan. 1 Issued the note for cash at its face amount Dec Year 4 31 Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326. Dec 31 Paid the annual payment on the note, including $3,610 of interest. The remainder of the payment reduced the principal balance on the note. On January 1, Year 1, Wedekind Company issued a $213,000, five-year, 4% installment note to Shannon Bank. The note requires annual payments of $47,846, beginning on December 31, Year 1. Required: Joumalize the entries to record the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered Year 1 Jan. 1 Issued the note for cash at its face amount Dec Year 4 31 Paid the annual payment on the note, which consisted of interest of $8,520 and principal of $39,326. Dec 31 Paid the annual payment on the note, including $3,610 of interest. The remainder of the payment reduced the principal balance on the note.

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Answer Wedekind Company Journal Entries Year 1 Jan 1 Year 1 Account Debit Credit Cash 213000 No... View the full answer