Problem
On January 1.2015. Tropical Paradise borrows $42,000 by agreeing to a 5%. four-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $967.23 are due at the end of each month with the first installment due on January 31, 2015. Record the issuance of me installment note payable and the first two monthly payments.