Question: On August 1, a $48,000, 9%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest

On August 1, a $48,000, 9%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $18,962.63. The entry to record the first payment on July 31 would include:

Multiple Choice

Debit to Notes Payable of $18,962.63
Debit to Interest Expense of $4,320.00.
Debit to Cash of $18,962.63.
Credit to Notes Payable of $18,962.63
Credit to Cash $14,642.63

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

13. On October 1, a $30,000, 6%, 3-year installment note payableis issued by a company. The note requires equal payments ofprincipal plus accrued interest be paid at the end of each year onSeptember...

2) A company issued 5-year, 6.5% bonds with a par value of $100,000. The market rate when the bonds were issued was 7.0%. The company received $98,688 cash for the bonds. Using the effective interest...

1. If bonds for Crayon Corporation, with a face value of $150,000, are converted into common stock when the carrying value of the bonds is $135,000, the entry to record the conversion will include a...

13. On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest be paid at the end of each year on...

On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires that $10,000 of principal plus accrued interest be paid at the end of each year on September 30....

Adonis Corporation issued 10-year, 11% bonds with a par value of $300,000. Interest is paid semiannually. The market rate on the issue date was 10%. Adonis received $318,696 in cash proceeds. Which...

On August 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $11,223.34. The entry to record the first...

please show work and read carefully A company borrowed $21,000 by signing a 90-day promissory note at 12%. The total interest due on the maturity date is: (Use 360 days a year.) 1. $2520.00 $630.00...

QUESTION 14 On August 1, a $30,000. 6%. 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of 511.223.34. The entry to record...

1. On August 1, a $45,600, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $17,375.96. The entry to record the first...

Suppose that m is a positive integer such that 6m + 1, 12m + 1 and 18m + 1 are all primes. Let n = (6m + 1)(12m + 1)(18m + 1). Prove that n is a Carmichael number.

How far apart are an object and an image formed by a 75-cm-focal-length converging lens if the image is 2.5 x larger than the object and is real?

Below are two situations in which a firm must decide whether to lease or to buy a particular asset. Based on your understanding of the advantages to leasing from a qualitative perspective, what is...

Identify in the column on the left if it is a form of primary data or secondary data? Question 4 options: 1 2 Questionnaire data 1 2 Internet - based report 1 2 Social media data 1 2 Sales results...

=+5. What do you want them to think?

=+8. What kind of tactics (specific ad/promotional techniques) do you want to use? For example, do you want to use viral marketing, interactive online components, out-of-home messages, print ads,...

=+What the product does for the end-user.)