Maurice Tutor

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Teaching Since: May 2017
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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 21 Aug 2017 My Price 4.00

annual principal

Flipco signed a 10-year note payable on January 1, 2014, 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, 2015 includes

    1. a debit to Interest expense for $36,000.

    2. a debit to Interest expense for $40,000.

    3. a credit to Long-term notes payable for $80,000.

    4. a credit to Cash of $120,000.

Answers

Maurice Tutor
(5)
Status NEW Posted 21 Aug 2017 05:08 PM My Price 4.00

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