Ask Question
13 June, 18:57

On the first day of the fiscal year, Hawthorne Company obtained an $88,000, seven-year, 5% installment note from Sea Side Bank. The note requires annual payments of $15,208, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $4,400 and principal repayment of $10,808. The journal entry Hawthorne would record to make the first annual payment due on the note would include a:

+5
Answers (2)
  1. 13 June, 20:55
    0
    DR - Interest expense - $4,400

    Explanation:

    DR - Interest expense - $4,400

    DR - Notes payable - $10,808

    CR - Bank/Cash - $15,208
  2. 13 June, 21:58
    0
    Notes Payable will be debited by $10,808

    Interest expense will be debited by $4,400

    Cash will be credited by $15,208
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On the first day of the fiscal year, Hawthorne Company obtained an $88,000, seven-year, 5% installment note from Sea Side Bank. The note ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers