Question: On August 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest

On August 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $11,223.34. The entry to record the first payment on July 31 would include: Multiple Choice Debit to Notes Payable of $11,223.34 Debit to Interest Expense of $1,800. Debit to Cash of $11,223.34. Credit to Notes Payable of $11,223.34.

On August 1 , a $30,000,6%,3-year instaliment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $11,223.34. The entry to record the first payment on July 31 would include: Multiple Choice Debit to Notes Payable of $11,223.34 Debit to Interest Expense of $1,800 Debit to Cash of $11,223.34 Credit to Notes Payable of $11,223.34

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