On january 1 2013 a company borrowed 50000 cash by signing

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On January 1, 2013, a company borrowed $50,000 cash by signing a 7% installment note that is to be repaid with five annual end-of year payments, the first of which is due on December 31,2013.

(a) Prepare the company's gernal journal entry to record the note's issuance.

(b) Assume thatt the annual payments are o consist of accrued interest plus equal amounts of principal. Prepare the general journal entries to record the first and second installment payments.

Reference no: EM13587145

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