Brief Exercise 9-24 (Static) Determine financial statement effects of installment notes (LO92)

On January 1, 2024, Corvallis Carnivals borrows $30,000 to purchase a delivery truck by agreeing to a 5%, five-year loan with the bank. Payments of $566.14 are due at the end of each month, with the first installment due on January 31, 2024.

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1.Determine the financial statement effects of the issuance of the installment note.

Income Statement
Revenues			Expenses		=	Net Income
Balance Sheet
Assets		=	Liabilities		+	Stockholders Equity

2.Determine the financial statement effects of the first monthly payment. (Amounts to be deducted should be entered with minus sign. Round your answer to 2 decimal places.)

Income Statement
Revenues			Expenses		=	Net Income
Balance Sheet
Assets		=	Liabilities		+	Stockholders Equity