Question: Please answer the following question and show your work. Thank you very much for your help. On January 1, 2020, Mush Co. took out a

Please answer the following question and show your work. Thank you very much for your help.

On January 1, 2020, Mush Co. took out a 5-year loan from a bank for $6000 in principal (amortizing debt). Mush Co. must make payments quarterly (four times per year). The stated interest rate on the loan was 6.75% and equaled the market interest rate. The following information is from the loan's amortization table: Payment Interest Principal Principal Payment amount portion portion remaining 1/1/2020 $6,000 3/31/2020 $356 $101 $255 $5,745 6/30/2020 $356 $97 $259 $5,486 9/30/2020 Which three of the following lines comprised the journal entry for the first payment? Dr. Interest Expense $356 Cr. Cash $101 Dr. Debt Payable $255 0 0 0 0 0 0 0 Dr. Interest Expense $101 Cr. Interest Payable $101 Dr. Debt Payable $356 Cr. Cash $356

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