Problem related to first installment payment


On july1, 2013 avery services issued a 4% long term note payable for $10,000. it is payable over a 5 year term in $2,000 principal installment on july 1, of each year. each yearly installment will include both principal repayment of $2,000 and interest payment for the preceeding one year period. please provide the journal entry needed on july 1, 2014 when the first installment payment is made.

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Accounting Basics: Problem related to first installment payment
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