On January $1,2024,$ Royal Paradise borrows $$38,000$ by agreeing to a $6\%,$ five$-$year note with the bank. The funds will be used to

purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $$734\mathrm{.}65$ are due at

the end of each month, with the first installment due on January $31,2024.$

Required:

How will the issuance of the installment notes payable affect the financial statements?

How will the first two monthly payments affect the financial statements?

Complete this question by entering your answers in the tabs below.

How will the issuance of the installment notes payable affect the financial statements?

Note: Amounts to be deducted should be indicated by a minus sign.

How will the first monthly payment on January $31$ affect the financial statements?

Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to $2$ decimal places.

How will the second monthly payment on February $28$ affect the financial statements?

Note: Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to $2$ decimal places.