Flipco signed a 10-year note payable on January 1, 2025, of ($800,000). The note requires annual principal
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Flipco signed a 10-year note payable on January 1, 2025, of \($800,000\). The note requires annual principal payments each December 31 of \($80,000\) plus interest at 5%.
The entry to record the annual payment on December 31, 2026, includes
a. 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 \($120,000\).
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Related Book For
Horngrens Accounting The Financial Chapters
ISBN: 9780137884858
14th Edition
Authors: Brenda Mattison, Tracie Miller-Nobles
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