on january 1 brooks incorporated borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $25,381. complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

A financial statement that lists a company's assets, liabilities, and shareholder equity at a certain point in time is referred to as a balance sheet.

The foundation for calculating investor return rates and assessing the capital structure of a company is provided by balance sheets.

The balance sheet is a financial statement that gives a quick overview of the assets and liabilities of a firm as well as the amount of shareholder investment.

When doing basic analysis or calculating financial ratios, balance sheets can be utilized in conjunction with other crucial financial data.

A company's balance sheet gives a quick snapshot of its financial situation at any one time. On its alone, it cannot provide an understanding of the tendencies manifesting over a longer time frame. This calls for a comparison of the balance sheet to those from earlier periods.

According to our question-

Brooks Inc.

Journal entries

DATE General Journal DEBIT ($) CREDIT ($)

12/31 Interest Expense 4,500.00

(90,000 x 5%)

Notes Payable (Balancing Figure) 20,881.00

Cash 25,381.00

Hence, The drop-down menus and entering the dollar amounts in the debit or credit columns = Cash 25,381.00

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