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nirvana33 [79]
3 years ago
10

On the first day of the fiscal year, a company issues $65,000, 6%, five-year installment

Mathematics
1 answer:
enot [183]3 years ago
7 0

Answer:

Dr  cash      $65,000

Cr Notes payable              $65,000

repayment:

Dr Notes payable      $11,531

Dr interest expense  $3,900

Cr Cash                                        $15,431

Step-by-step explanation:

Upon the issuance of the notes,the cash received would be debited to cash account and the same amount credited to notes payable account.

The payment of $15,431 as annual repayment on the notes payable would be credited to cash account as an outflow of cash from the business while the notes payable and interest expense accounts would be debited with $11,531 and$3,900 respectively

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