Question: Accounting Creations Double Entry' has tvvo loans outstanding as of 12/31/2018 Interest is paid annually on January' 1st. The facts on each loan are

is paid annually on January' 1st. The facts on each loan are

as follows: Bank Loan outstanding since January 1, 2018 with a 4.0%

interest rate. This loan was taken out to finance the construction of

the Storage Building. Interest for the year and 10% of the principle

will be paid to the bank on January 1, 2019_ Except for

Accounting Creations Double Entry' has tvvo loans outstanding as of 12/31/2018 Interest is paid annually on January' 1st. The facts on each loan are as follows: Bank Loan outstanding since January 1, 2018 with a 4.0% interest rate. This loan was taken out to finance the construction of the Storage Building. Interest for the year and 10% of the principle will be paid to the bank on January 1, 2019_ Except for recording the initial cash received and loan, no additional entries have been made. Bank Loan also outstanding all of 2018 with 3_06% interest rate. Interest is due on January' 1, 2019. Principle is due on January 1, 2024. Since interest will not be paid to the Bank until 2019, Accounting Creations' office staff did not accrue any interest

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