On January 1, Gemstone Company obtained a $165,000, 10-year,...
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On January 1, Gemstone Company obtained a $165,000, 10-year, 7% ins nt note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $12.942. The journal entry to record the payment of the first annual amount due on the note would include a Oa. credit to interest Payable for $11,550 Ob. debit to Cash for $11,942 Oc. debit to Interest Expense for $23,492 Od. debit to Notes Payable for 511,942
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