Question

Flipco signed a 15​-year note payable on January​ 1, 2018​, of $900,000. The note requires annual principal payments each December 31 of 60,000 plus interest at 10​%. The entry to record the annual payment on December​ 31, 2022​, includesA. a debit to Interest Expense for $ 36, 000.
B. a debit to Interest Expense for $ 40, 000.
C. a credit to Notes Payable for $ 80, 000.
D. a credit to Cash of $ 120, 000.

Answer 1

Answer:A debit to interest expense for $36,000

Explanation:

interest expense= 800,000-80,000 = 720,000 5% 12/12