Mass confusion!

I am recording a long-term note payable of a borrowed amt of 200,000 on a 4 yr, 9% note payable that calls for annual installment payment of 50,000 principal plus interest. Monies where borrowed on Feb 28 and I am recording on Feb 28 for the installment

This is how I recorded it!

Interest Expense debit 50,000
Long-Term Note Payable debit 16,560

Cash credit 66,560

Is this correct?

Your narrative says you paid $50,000 on the principal plus interest but you only reduced the note balance by $16,560. It would seem that the Long-Term Note should be debited for the $50,000. Sorry would need more info to determine what the interest would be. Interest due for the first payment would be $18,000 for a full year.

This is the question

On Feb 28, 2006 I borrowed 200,000 on a 4-year, 9% note payable that calls for annual installment payments of 50,000 principal plus interest.

Then

On Feb 28, 2007 I paid the first installment and interest for one year on the 4-year note payable.

This is how I recorded it all

Feb 28 Long-term note payable debit of 200,000
Current portion of note payable credit 200,000
Then I went to record the first installment and interest as follows

28-Feb Long-Term Note Payable debit 50,000
Interest Payable debit 16,560
Interest Expense debit 18,000
Cash credit 84,560
Record first installment payment