On January 1, 2016, Belden, 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, 2017. The amortization schedule for the first three payments is provided. Prepare the journal entry for the issuance of the note and for the January 1, 2018 note payment.
Beginning Balance Principal Payment Interest Expense Total Payment Ending Balance
01/01/2016 $50,000
01/01/2017 $50,000 $5,000 $6,000 $11,000 45,000
01/01/2018 45,000 5,000 5,400 10,400 40,000
01/01/2019 40,000 5,000 4,800 9,800 35,000
What will be an ideal response
1/1/16 Cash 50,000
Notes Payable 50,000
1/1/18 Notes Payable 5,000
Interest Expense 5,400
Cash 10,400
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