Question: On January 1, 2016, Belden, Inc. issued long-term notes payable for $50,000. The note will be paid over 10 years with payments of $5,000 plus

On January 1, 2016, Belden, Inc. issued long-term notes payable for $50,000. The note will be paid over 10 years with payments of $5,000 plus 12% interest due each January 1, beginning January 1, 2017. The amortization schedule for the first three payments is provided. Prepare the journal entry for the issuance of the note and for the January 1, 2018 note payment.

	Beginning Balance	Principal Payment	Interest Expense	Total Payment	Ending Balance
01/01/2016					$50,000
01/01/2017	$50,000	$5,000	$6,000	$11,000	45,000
01/01/2018	45,000	5,000	5,400	10,400	40,000
01/01/2019	40,000	5,000	4,800	9,800	35,000

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