On January 1, 2015, Julee Enterprises borrows $38,000 to purchase a new Toyota H
ID: 2467333 • Letter: O
Question
On January 1, 2015, Julee Enterprises borrows $38,000 to purchase a new Toyota Highlander by agreeing to a 9%, 4-year note with the bank. Payments of $945.63 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 two monthly payments. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to 2 decimal places.)
Record the issuance of the note payable on Jan 01, 2015.
a.) Record the first payment on Jan 31, 2015.
b.) Record the second payment on Feb 28, 2015.
On January 1, 2015, Julee Enterprises borrows $38,000 to purchase a new Toyota Highlander by agreeing to a 9%, 4-year note with the bank. Payments of $945.63 are due at the end of each month with the first installment due on January 31, 2015.
Explanation / Answer
Loan Amount 38,000.00 Interest rate per month =9/12= 0.750 % per month Monthly Installement 945.63 Amortization Schedule Period Installment Interest Principal Amt $ Balance Principal 1.0 945.63 285.00 660.6 37,339.4 2.0 945.63 280.05 665.6 36,673.8 Journal Entry Date Account Title Dr $ Cr $ Jan 1.2015. Cash 38,000.00 Note Payable 38,000.00 ( borrowing & Accepting note payable) Jan 31.2015. Note Payable 660.63 Interest Expense 285.00 Cash 945.63 ( Interest expense and principal repaymnet 1st installment) Feb 28.2015. Note Payable 665.58 Interest Expense 280.05 Cash 945.63 ( Interest expense and principal repaymnet 2nd installment)
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