Flipco signed a 10-year note payable on January 1, 2016, of $800,000. The note requires annual principal payments each December 31 of $80,000 plus interest at 5%. The entry to record the annual payment on December 31, 2017, includesa. a debit to Interest Expense for $36,000.b. a debit to Interest Expense for $40,000.c. a credit to Notes Payable for $80,000.d. a credit to Cash of $120,000.
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Flipco signed a 10-year note payable on January 1, 2016, of $800,000. The note requires annual princ...
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