On January 1, the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a
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Question:
On January 1, the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822.
Required:
A. | Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles.
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B. | Explain how the notes payable would be reported on the balance sheet at the end of the first year.
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Related Book For
Corporate Financial Accounting
ISBN: 978-1285868783
13th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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