A $160,000.00 loan is acquired from USAA Financing for 3 years at 4.50% annual interest rate. The
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Question:
A $160,000.00 loan is acquired from USAA Financing for 3 years at 4.50% annual interest rate.
The date of the loan is March 1, 2014 and payments will be made at the end of each month starting on March 31, 2020
Create the general journal entries for the borrower on March 1, 2020 when the loan is generated, and on March 31, 2020 when the first loan payment is made.(check figure: current portion of the loan balance after the first payment on March 31, 2020 is made = $51,147.64)
Amount | ||||
Annual Interest Rate | ||||
# of Years | ||||
Payments per Year | ||||
Payment | ||||
Date | # of Pmt | Interest | Principle | |
Borrower: | ||||
3/1/20 | Cash | |||
Notes Payable | ||||
Notes Payable | ||||
Current Portion of Notes Payable | ||||
3/31/20 | Interest Expense | |||
Notes Payable | ||||
Cash | ||||
Notes Payable | ||||
Current Portion of Notes Payable | ||||
Current Portion | Notes Payable | |||
3/1/14 | ||||
3/1/14 | ||||
3/31/14 | ||||
3/31/14 | ||||
Posted Date: