Loaned $6,000 to Maple Valley Electric by issuing a 4-year note receivable with a stated...
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Accounting
Loaned $6,000 to Maple Valley Electric by issuing a 4-year note receivable with a stated annual interest rate of 8%. The funds were loaned by issuing a check. Interest payments of $480 are due on December 31st of each year beginning in 2018. The entire principal is due four years from December 31, 2017.
Can anyone help me record this transaction? I believe I need to record this in the cash disbursements journal, but I do not know how much or what accounts to use. Thank you for your help.
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