In: Accounting
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