In order to expand its business, the management of Carroll, Inc issued a long-term notes payable for $50,000 on January 1, 2016
The note will be paid over a 10-year period with equal annual principal payments, December 31 of each year. The annual interest rate is 12%. Prepare the journal entry for the first installment payment.
What will be an ideal response
Interest Expense ($50,000 x 12%) 6,000
Long-Term Notes Payable ($50,000 / 10 ) 5,000
Cash 11,000
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What will be an ideal response?
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A) A short description is provided that identifies the content of the visual. B) An additional discussion of the visuals content is included. C) A short description of the purpose of the visual is included. D) An explanation of various colors and symbols is provided. E) An explanation of the significance of the visual is provided.