The following amortization schedule indicates the interest and principal that Chip’s Cookie Corporation (CCC) must repay on an installment note established January 1, 2018. CCC has a December 31 year-end and makes the required annual payments on December 31. Use the amortization schedule to prepare CCC’s required journal entries on (a) January 1, 2018; (b) December 31, 2018; (c) December 31, 2019; (d) December 31, 2020; and (e) December 31, 2021. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

Check the explanation

Explanation:

Date                          General Journal                      Debit                  Credit

Jan.1, 2015              Cash or Purchases                $30,000

                                   Notes Payable                                            $30,000

Dec.31, 2015               Notes Payable                    $6,960

                          Interest Expense                         $1,500

                                           Cash                                                         $8,460

Dec.31, 2016             Notes Payable                     $7,308

                        Interest Expense                          $1,152

                                  Cash                                                                $8,460

Dec.31, 2017              Notes Payable                     $7,673

                         Interest Expense                           $787

                                         Cash                                                          $8,460

Dec.31, 2018               Notes Payable                    $8,059

                          Interest Expense                           $401

                                         Cash                                                           $8,460

The Annual payment for notes payable is $8,460 (which includes interest and principal repayment)

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