Question: On March1, 2018, Vintage Services issued an8% long-term notes payable for$22,000. It is payable over a16-year term in$1,375 principal installments on March 1 of eachyear,

On March1, 2018, Vintage Services issued an8% long-term notes payable for$22,000. It is payable over a16-year term in$1,375 principal installments on March 1 of eachyear, beginning March1, 2019. Each yearly installment will include both principal repayment of$1,375 and interest payment for the precedingone-year period. The journal entry to pay the first installment will include a debit to Interest Expense for$1,760. True or False?

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