Test 3 Seved Help Save & Exit SL On July 1, Shady Creek Resort borrowed $360,000 cash by signing a 10-year, 7% installment note requiring equal payments each June 30 of $51,256. What is the journal entry to record the first annual payment? Multiple Choice Debit Interest Expense $51,256; credit Cash $51,256. Debit Interest Expense $25,200; debit Interest Payable $26,056; credit Cash $51,256. Debit interest Expense $25,200; debit Notes Payable $26.86; credit Cash $51,256. Debit Interest Expense $25,200; credit Cash $25,200. Debit Cash $360,000; debit interest Expense $51,256; credit Notes Payable $411,256