Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Accounting for a long-term note payable On January 1, 2018, Lakeman-Fay signed a $1,500,000,...

Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise.

Accounting for a long-term note payable

On January 1, 2018, Lakeman-Fay signed a $1,500,000, 15-year, 7% note. The loan required Lakeman-Fay to make annual payments on December 31 of $100,000 principal plus interest.

Requirements

1. Journalize the issuance of the note on January 1, 2018.


2. Journalize the first note payment on December 31, 2018.