Question: On August 1, a $56,400, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest

On August 1, a $56,400, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $21,491.31. The entry to record the first payment on July 31 would include:

Debit to Notes Payable of $21,491.31

Debit to Interest Expense of $3,948.00.

Debit to Cash of $21,491.31.

Credit to Notes Payable of $21,491.31

Credit to Cash $17,543.31

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...

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...

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...

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....

The following transactions occurred in Wendell Corporation, which has a December 31 year end. 1. Property taxes of $40,000 were assessed on March 1 for the calendar year. They are payable by May 1....

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...

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...

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...

Coca Cola just paid a dividend of $2.61 a share and will pay an annual dividend of $2.65 a share on their common stock next year. The company has a dividend policy where it adheres to a constant rate...

The sample space for an experiment contains five sample EES points with probabilities as shown in the table. Find the probability of each of the following events: Sample Points Probabilities 1...

Question 3 2 ( 4 points ) List the goal and output for each stage during the Waterfall Software Development Life Cycle:

Which of Hofstedes dimensions analyzed the relationship between work and gender roles? Power distance Masculinity versus femininity Long-term orientation Time orientation 2. Hofstede's study isolated...

Monika Ille describes APTNs approach to total rewards as holistic in order to create a healthy work environment. What does Ille mean by this?

Working in groups of 4, review the following descriptions of 3 different employees. Describe the possible causes of poor performance in each case. Then pair off and create a role-playing scenario to...

What type of performance method should Onway Stationery use for salespeople? Why? Charlie Lu sat at his desk staring at his resum. He wondered if he should immediately quit his job and start looking...