Question: On March 1, 2016, Emerson Services issued a 10% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 annual principal

On March 1, 2016, Emerson Services issued a 10% long-term notes

On March 1, 2016, Emerson Services issued a 10% long-term notes payable for $15,000. It is payable over a 3-year term in $5,000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2017. Each yearly installment will include both principal repayment of $5,000 and interest payment for the preceding one-year period. On March 1, 2017, ____________. The accounting period ends on December 31. Emerson must accrue $5,000 of Interest Expense Emerson must accrue the coming $5,000 as the current portion of principal payment Emerson must pay $1, 500 of interest to the note holder Emerson will receive $5,000 as an installment payment

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