On January 1, 2015, Corvallis Carnivals borrows $27,000 to purchase a delivery truck by agreeing...
Question:
On January 1, 2015, Corvallis Carnivals borrows $27,000 to purchase a delivery truck by agreeing to a 6%, five-year loan with the bank. Payments of $521.99 are due at the end of each month, with the first installment due on January 31, 2015.
Record the issuance of the note payable and the first monthly payment.
Notes Payable
Promissory notes issued by an entity are recorded in its books a Notes Payables. The monetary instrument issued in lieu of any asset (cash or non cash) which underlines the amount, interest rate and term of the loan is called a promissory note. The accounting for the note is required to be done according to the type of loan for which the note is issued.
Answer and Explanation: 1
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View this answer| Date | Account Titles and Explanation | Debit | Credit |
|---|---|---|---|
| January 1, 2015 | Cash | $27,000.00 | |
| 6% Note... |
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