Question: On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires that $10,000 of principal plus accrued interest

  1. On October 1, a $30,000, 6%, 3-year installment note payable is issued by a company. The note requires that $10,000 of principal plus accrued interest be paid at the end of each year on September 30. The issuers journal entry to record the second annual interest payment would include:
  1. A debit to Interest Expense for $1,800
  2. A debit to Interest Expense for $1,200
  3. A credit to Cash for $11,800
  4. A credit to Cash for $10,000
  5. A debit to Notes Payable for $1,200

Please Include all the work

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