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Advanced Placement (AP), 11.12.2020 03:40, Amazingdolannn
On July 1, Shady Creek Resort borrowed $380,000 cash by signing a 10-year, 9% installment note requiring equal payments each June 30 of $59,212. What is the journal entry to record the first annual payment?
Debit Cash $380,000; debit Interest Expense $59,212; credit Notes Payable $439,212.
Debit Interest Expense $59,212; credit Cash $59,212.
Debit Interest Expense $34,200; credit Cash $34,200.
Debit Interest Expense $34,200; debit Interest Payable $25,012; credit Cash $59,212.
Debit Interest Expense $34,200; debit Notes Payable $25,012; credit Cash $59,212.
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On July 1, Shady Creek Resort borrowed $380,000 cash by signing a 10-year, 9% installment note requi...
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