On march 1, 2018, lewis services issued a 6% long-term notes payable for $18,000. it is payable
over a 3-year term in $6000 principal installments on march 1 of each year, beginning march 1, 2019.
which of the following entries needs to be made on march 1, 2018?
a) long-term notes payable 6000
cash 6000
b) cash 18,000
long-term notes payable 18,000
c) current portion of long-term notes payable 18,000
long-term notes payable 18,000
d) long-term notes payable 18,000
accounts payable 18,000

B) Cash 18,000

    Long-Term Notes Payable 18,000

Explanation:

The only records that Lewis Services should make on March 1 regarding the issuing of the long term notes payable are:

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23