On January 1, MM Company borrows $310,000 cash from a bank and in return signs an 4% installment note for five annual payments of $69,634 each

 Prepare the journal entry to record issuance of the note.

 For the first $69,634 annual payment at December 31, what amount goes toward Interest expense? What amount goes toward principal reduction of the note?
 

Answer rating: 100% (QA)

Solution Calculating the journal ... View the full answer