On January 1, 2017, Eagle borrows $25,000 cash by signing a four-year, 7% installment note. The...

On January 1, 2017, Eagle borrows $25,000 cash by signing a four-year, 7% installment note. The note requires four equal payments of $7,381, consisting of accrued interest and principal on December 31 of each year from 2017 through 2020. (Round your intermediate calculations and final answers to the nearest dollar amount.)

Prepare the journal entries for Eagle to record the loan on January 1, 2017, and the four payments from December 31, 2017, through December 31, 2020.

Eagle borrows $25,000 cash by signing a four-year, 7% installment note. Record the issuance of the note on January 1, 2017.
2

Record the payment of the first installment payment of interest and principal on December 31, 2017.
3

Record the payment of the second installment payment of interest and principal on December 31, 2018.
4

Record the payment of the third installment payment of interest and principal on December 31, 2019.
5

Record the payment of the fourth installment payment of interest and principal on December 31, 2020.

Expert Solution

ekkarill92 answered 2 years ago

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