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In: Accounting

Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments...

Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at the end of the month for 12 months. The interest rate is 12% annually. If the monthly payments are $888.49, what is the journal entry to record the cash received on Jan. 1 and the first payment made on Jan. 31?

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Expert Solution

Jornnal Entry
Date Particular Debit $ Credit $
1. jan. Cash A/c 10,000
To notes payables 10,000
(Being amount Borrowed Through note payable)
31. jan Interest Expense 100
Note Payables 788.49
To Cash 888.49
(Being interst paid)

ekkarill92 answered 2 years ago
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