Question: On January 1 , 2 0 2 4 , Tropical Cruise Lines borrows $ 3 4 , 0 0 0 by agreeing to a 6

On January

1, 2024,

Tropical Cruise Lines borrows $

34, 000

by agreeing to a

6 %,

six

-

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 $

563.48

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?

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