On January 1, 2018, Belview, Inc. issued long-term notes payable for $50,000. The note will be paid over 10 years with payments of $5,000 plus 12% interest due each January 1, beginning January 1, 2019. The amortization schedule for the first three payments is provided.
Prepare the journal entries for the issuance of the note and for the January 1, 2020 note payment. Omit explanation.
1/1/18 Cash 50,000
Notes Payable 50,000
1/1/20 Notes Payable 5,000
Interest Expense 5,400
Cash 10,400
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