Camp Elim obtains a $125,000, 6%, five-year installment note for a new camp bus on January...

Camp Elim obtains a $125,000, 6%, five-year installment note for a new camp bus on January 1, 2021. The note requires monthly installment payments of $2,416.60 What journal entry will be recorded for the first month’s payment on January 31, 2021?

Multiple Choice

Debit interest expense $1,500; debit notes payable $916.60; credit cash $2,416.60
Debit notes payable $625; debit interest expense $1,791.60; credit cash $2,416.60
Debit interest expense $625; debit notes payable $1,791.60; credit cash $2,416.60
Debit notes payable $1,500; debit interest expense $916.60; credit cash $2,416.60

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Expert Solution

ekkarill92 answered 1 year ago

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