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"On January 1, 2019, Eagle Company borrows $100,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $29,523, consisting of accrued interest and principal on December 31 of each year from 2019 through 2022."

Required:
Prepare the journal entries for Eagle to record the note's issuance and each of the four payments.

Respuesta :

anwar96iqbal

Journal Entries:

   Date                  Particulars                                   Debit                     Credit

Jan. 1, 2019           Cash                                           $100,000

                                     Notes Payable                                                 $100,000

Dec. 31, 2019        Interest Expenses                           7,000

                             Notes Payable                              22,523

                                     Cash                                                                     29,523

Dec. 31, 2020      Interest Expenses                           5,423

                             Notes Payable                              24,100

                                     Cash                                                                     29,523

Dec. 31, 2021       Interest Expenses                            3,736

                             Notes Payable                              25,787

                                     Cash                                                                     29,523

Dec. 31, 2022       Interest Expenses                            1,931

                             Notes Payable                              27,592

                                     Cash                                                                     29,523

Note: It should be kept in mind that the Interest Expenses is calculated by taking the Balance of Notes Payable, and multiplying it with 7%.

Thanks!

Answer:

The journal entries are uploaded.

Explanation:

The journal entries for Eagle to record the note's issuance and each of the four payments.

Journal entries:

  • Journal entry is an entry to the journal. Journal is a record that keeps accounting transactions in chronological order i.e as they occur.
  • Ledger is a record that keeps accounting transactions by accounts. Account is a unit to record and summarize accounting transactions.

Learn about more bonds refer:

  • https://brainly.com/question/17488025  
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