On January 1, 2016, Leming - Fang signed a $1,200,000 12- year, 5% note. the loa

Question

On January 1, 2016, Leming - Fang signed a $1,200,000 12- year, 5% note. the loan required Leming-Fang to make annual

payments on December 31 of $100,000 principal plus interest

This Question: 1 pt On January 1, 2016, Le ng Fang signed a $1.200 000 12-year, 5% te The loan required Lening-Fang to make annual payments on December 31 of $100,000 pri Requirements 1. Jounalize the issuance of the note on January 1, 2016 2. Joumalize the first note payment on December 31, 2016. Record dabits frst, thon credts. Select explanations on the last Ine of the jpurnal entry i al pis interest Requirement 1. Joumalize the issuance of the note on January 1. 2016. Date Accounts and Explanations Debit Credit 2016 Jan. 1 Requirement 2. Journalize the first note payment on December 31 2016 Accounts and Explanations Credit Date 2016 Dec 31 Debit

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Dr Cr Jan 01'2016 Cash DR        1,200,000.00 To Note Payable        1,200,000.00 Dec 31'2016 Note Payable Dr            100,000.00 Interest expense Dr = 1.2m*5%              60,000.00 To Cash           160,000.00

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