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Usimov [2.4K]
3 years ago
7

On August 1, a $39,600, 8%, 3-year installment note payable is issued by a company. The note requires equal payments of principa

l plus accrued interest of $15,366.13. The entry to record the first payment on July 31 would include: Multiple Choice Debit to Cash of $15,366.13. Credit to Notes Payable of $15,366.13 Debit to Interest Expense of $3,168.00. Debit to Notes Payable of $15,366.13 Credit to Cash $12,198.13
Business
1 answer:
marishachu [46]3 years ago
6 0

Answer:

Debit to Notes Payable of $15,366.13

Explanation:

The Notes Payable are debited and Cash is Credited. This is done to show the decrease in the Liability and a decrease in Assets as a result of the repayment.

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