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On January 1 2014 O’Brien Company issued a $210000 six-year 9% installment note to Bulldog Bank. The note requires annual payments of $46813 beginning on December 31 2014 Journalize

On January 1, 2014, O’Brien Company issued a $210,000, six-year, 9% installment note to Bulldog Bank. The note requires annual payments of $46,813, beginning on December 31, 2014. Journalize the entries to record the following: 2014 Jan. 1. Issued the notes for cash at their face amount. Dec. 31. Paid the annual payment on the note, which consisted of interest of $18,900 and principal of $27,913. 2017 Dec. 31. Paid the annual payment on the note, included $10,665 of interest. The remainder of the payment reduced the principal balance on the note. 

Mar 28 2020 View more View Less

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