Andy Corporation borrowed $1,500,000 on January 1, 2014. The note agreement spec

Question

Andy Corporation borrowed $1,500,000 on January 1, 2014. The note agreement specifies that it will pay interest quartery at 896 March 31, June 30, September 30 and December 31. The principal will be due on December 31 on December 31. What at the end of each quarter? What journal entries will Andy Corporation make on December 31, 2019? , 2019. The company's fiscal year ends journal entry will Andy Corporation make on January 1, 2014? What journal entry will Andy Corporation make Prepare the journal entry that Andy Corporation will record on January 1,2014. (Record debits first, then credits. Exclude explanations from any journal entries.) Account January 1, 2014

Explanation / Answer

Date Account Debit Credit January 1, 2014 Cash 15,00,000 Long term -Notes Payable 15,00,000 To record long term borrowings End of each quarter Interest -Expense        30,000 Cash        30,000 To record interest paid on end of each quarter December 31, 2019 Long term -Notes Payable 15,00,000 Interest -Expense        30,000 Cash 15,30,000 Repayment of Borrowing along with last quarter interest

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