Westwood Company borrowed $202,500 cash on January 1, 2019, by signing an 8% mortgage note that is to be repaid in 10 equal annual end-of-year payments. The first payment is due on December 31, 2019.
The journal entry to record the first payment will include:
A) A debit to Notes Payable for $16,200
B) A debit to Notes Payable for $30,178
C) A debit to Interest Expense for $30,178
D) A debit to Notes Payable for $13,978
Correct Answer:
Verified
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