Answered

Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

Flamingo Company borrows $30,000 using a five-year, long-term installment note payable. The rate on the note is 5 percent and Flamingo agrees to make monthly payments of $566.14. When Flamingo records its first payment on the note payable, what will the journal entry look like (without the numbers).

Sagot :

Tundexi

Answer:

Interest expense = 30,000*5%*1/12

Interest expense = 30,000*0.00416666667

Interest expense = $125.0000001

The journal entry will be:

Description                  Debit        Credit

Interest expense          $125  

Notes payable             $441.14  

Cash                                               $566.14

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We're here to help at Westonci.ca. Keep visiting for the best answers to your questions.