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Question 14.8: Journalizing Installment Notes On the first day of the fisc...

Journalizing Installment Notes  

On the first day of the fiscal year, a company issues a $30,000, 10%, five-year installment note that has annual payments of $7,914. The first note payment consists of $3,000 of interest and $4,914 of principal repayment.

a. Journalize the entry to record the issuance of the installment note.
b. Journalize the first annual note payment.

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