Problem Six

On December $31,2015,$ Aye Corporation borrowed $$50,000$ by signing a $9\%$ installment note that is to be repaid in $5$ annual payments, the first of which is due on December $31,2016.$

Required:

a$)$ Prepare a journal entry to record the issuance of the note

b$)$ Assuming that payments consist of accrued interest with equal principal payments, journalize the first two payments.

c$)$ Independent of $($b$),$ assuming that the note requires equal payments, journalize the first two payments.