Question $35$

In January $1,$ Year $1,$ Stratton Company borrowed $$100,000$ on a $10-$year, $7\%$ installment

note payable. The terms of the note require Stratton to pay $10$ equal payments of $$14,238$

each December $31$ for $10$ years. The required general journal entry to record the payment

on the note on December $31,$ Year $2$ is $($round to the nearest dollar$)$:

Debit Notes Payable $$10,000$; debit Interest Expense $$4,238$; credit Cash $$14,238.$

Debit Notes Payable $$7,000$; debit Interest Expense $$7,238$; credit Cash $$14,238.$

Debit Interest Expense $$7,000$; debit Notes Payable $$7,238$; credit Cash $$14,238.$

Debit Interest Expense $$6,493$; debit Notes Payable $$7,745$; credit Cash $$14,238.$

Debit Notes Payable $$14,238$; credit Cash $$14,238.$