on january 1, 2021, corvallis carnivals borrows $30,000 to purchase a delivery truck by agreeing to a 5%, five-year loan with the bank. payments of $566.14 are due at the end of each month, with the first installment due on january 31, 2021.

Based on the information given the appropriate entries to record the issuance of the note payable for cash and the first monthly payment are:

Corvallis Carnivals Journal entries

January 1, 2021

Debit Equipment $30,000

Credit Notes payable $30,000

( To record issuance of the note payable)

January 30, 2021

Debit Notes payable

($566.14-$125)

Debit Interest expense $125

($30,000 × 5% × 1 / 12)

Credit Cash  $566.14

(To record first monthly payment)

Explanation:

This is right have a great day:D