On August 1, a $48,000, 9%, 3-year installment note payable is issued by a company....
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Accounting
On August 1, a $48,000, 9%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $18,962.63. The entry to record the first payment on July 31 would include:
Multiple Choice
Debit to Notes Payable of $18,962.63
Debit to Interest Expense of $4,320.00.
Debit to Cash of $18,962.63.
Credit to Notes Payable of $18,962.63
Credit to Cash $14,642.63
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