On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a sevenâyear, 7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822. Journalize the entries to record the following:

a. Issued the installment note for cash on the first day of the fiscal year.
b. Paid the first annual payment on the note.

Please find answer in explanation column

Explanation:

a) Journal to record Issued installment note for cash on the first day of the fiscal year.

Date             Account                             Debit                 Credit

Jan 1     Cash                                     $85,000    

       Notes Payable                                                             $85,000

b) Journal to record the first annual payment on the note.

Date             Account                             Debit                 Credit

Dec 31     Interest  Expense                   $5,950

             Notes Payable                           $9,822.

                 Cash                                                                      $15,772            

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?

answer; organization;