Questions: Record the payment of the fourth installment payment of interest and principal on December 31, 2024. (Hint: Make sure that the balance in Notes payable is 0 after this entry.) Note: Enter debits before credits. Date General Journal Debit Credit ------------ December 31, 2024

To record the payment of the fourth installment of interest and principal on December 31, 2024, we need to ensure that the balance in Notes Payable is $0 after this entry. This implies that this is the final payment, and the entire remaining balance of the note is being paid off.

Here is the journal entry to record this transaction:

\begin{tabular}{|c|l|c|c|} \hline Date & General Journal & Debit & Credit \\ \hline \begin{tabular}{c} December 31, \\ 2024 \end{tabular} & Interest Expense & \$X & \\ \hline & Notes Payable & \$Y & \\ \hline & Cash & & \$Z \\ \hline \end{tabular}

Explanation:

1. Interest Expense: This represents the interest portion of the installment payment. The exact amount (denoted as \$X) would be calculated based on the interest rate and the remaining principal balance before this payment.
2. Notes Payable: This represents the principal portion of the installment payment. The exact amount (denoted as \$Y) would be the remaining balance of the note, ensuring that the balance in Notes Payable is $0 after this entry.
3. Cash: This represents the total cash outflow for the installment payment, which is the sum of the interest and principal portions (denoted as \$Z).

To summarize, the journal entry records the payment of both interest and principal, ensuring that the Notes Payable account is fully settled to a zero balance. The exact amounts for Interest Expense and Notes Payable would need to be determined based on the specific details of the note and the interest rate.