Question

On January 1, Year 1, Stratton Company borrowed $300,000 on a 10-year, 6% installment note payable. The terms of the note require Stratton to pay 10 equal payments of $40,760 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31, Year 2 is:

Answer 1

debit interest expense of $16,634 , debit note payable $24,126 : Credit cash $40,760

Step-by-step explanation:

Please attachment.